Thursday, 2 July 2020

Bitcoin Faces Another Rejection And It’s Vulnerable to a Drop Below $9K

Bitcoin was rejected once again near the $9,300 resistance against the US Dollar. BTC is currently recovering, but it remains at a risk of more downsides below $9,000.

  • Bitcoin topped near $9,302 and declined more than $300 in the past few hours.
  • The price is now trading well below $9,200 and the 100 hourly simple moving average.
  • There was a break below a crucial bullish trend line with support at $9,185 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to fail again near $9,200 and it could continue to move down below $9,000.

Bitcoin Price Turns Red

After yet another failure near $9,300, bitcoin started a sharp decline against the US Dollar. BTC broke the $9,200 support and the 100 hourly simple moving average to move into a bearish zone.

There was a sharp decline below the $9,100 and $9,080 levels. More importantly, there was a break below a crucial bullish trend line with support at $9,185 on the hourly chart of the BTC/USD pair.

The pair even broke the $9,000 level and traded as low as $8,933. It is currently correcting higher above the $9,000 pivot level. There was a break above the 23.6% Fib retracement level of the recent decline from the $9,302 high to $8,933 low.

Bitcoin Price

Bitcoin price traded below $9,200: Source: TradingView.com

BTC is currently trading near $9,100 and facing hurdles near the $9,200 level. It seems like the 50% Fib retracement level of the recent decline from the $9,302 high to $8,933 low is acting as a resistance.

The first major resistance is near the $9,160 level and the 100 hourly SMA. The next hurdle is near the $9,200 level and a connecting bearish trend line on the same chart. If there is an upside break above $9,160 and $9,200, the price could revisit the main $9,300 resistance level.

More Losses in BTC?

It seems like bitcoin price is likely to face a strong resistance near $9,160 and $9,200. If it fails to recover above $9,200, there are chances of another bearish wave.

An initial support is near the $9,000 pivot level. A daily close below the $9,000 level could open the doors for a larger decline towards the $8,800 support or $8,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 40 level.

Major Support Levels – $9,000, followed by $8,800.

Major Resistance Levels – $9,160, $9,200 and $9,300.

Credit: Source link



source https://cryptonews.wealthsharingsystems.com/2020/07/bitcoin-faces-another-rejection-and-its-vulnerable-to-a-drop-below-9k/

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