Bitcoin started a major decline after it was rejected near the $10,000 resistance against the US Dollar. BTC is currently recovering, but it is likely to face sellers near the 100 SMA (H4).
Bitcoin Turns Red
This past week, bitcoin failed to settle above the $10,000 resistance zone against the US Dollar. BTC price traded as high as $9,989 and started a major decline below the $9,900 and $9,800 levels.
The bears took control and were able to push the price below the $9,500 support and the 100 simple moving average (4-hours). The decline was initiated after there was a break below a key ascending channel with support near the $9,780 level on the 4-hours chart of the BTC/USD pair.
The decline was such that the pair broke the $9,200 support and traded as low as $9,084. Bitcoin is currently correcting higher and trading above the $9,300 level.
It surpassed the 23.6% Fib retracement level of the downward move from the $9,989 swing high to $9,084 low. On the upside, an initial resistance is near the $9,500 and $9,540 levels.
The 50% Fib retracement level of the downward move from the $9,989 swing high to $9,084 low is also near $9,537. The first major resistance is near the $9,600 level and the 100 simple moving average (4-hours).
There is also a major bearish trend line forming with resistance near $9,770 on the same chart. Therefore, the price must break the 100 SMA (H4) and then the trend line to move into a positive zone.
More Losses in BTC?
If bitcoin fails to clear the $9,500 resistance zone or the 100 simple moving average (4-hours), it could resume its decline below the $9,400 level.
The first key support is seen near the $9,300 level, below which it could retest the $9,080 zone. The main support is seen near the $9,000 level, where the bulls might take a stand.
4 hours MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 40 level.
Major Support Level – $9,300
Major Resistance Level – $9,600
Risk disclaimer: 76.4% of retail CFD accounts lose money.
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