Bitcoin price started a strong decline from the $10,160 resistance area. BTC/USD dived sharply below $10,000 before the bulls took a stand near the $9,700 support.
After a decent increase, the bitcoin price settled above the $10,000 resistance area against the US Dollar. The price even climbed above the $10,100 level, but it struggled to stay above the $10,160 area.
Looking at the 1-hour chart, the price topped near the $10,189 level and recently started a strong decline. There was a break below the $10,000 support area and the 25 simple moving average (1-hours, orange).
The market data is provided by TradingView, Bitfinex.
The price even dived below the $9,800 support area and tested the $9,700 area. A swing low is formed near $9,698 and the price is currently recovering nicely.
It broke the 50% Fib retracement level of the recent decline from the $10,189 high to $9,698 low. More importantly, the bitcoin price is currently trading above a key bullish trend line with support near $9,780 on the 1-hour chart.
On the upside, an initial hurdle is near the $10,000 level since it is the 61.8% Fib retracement level of the recent decline from the $10,189 high to $9,698 low.
The main hurdle on the upside is near the $10,080 and $10,160 levels. Therefore, a successful close above the $10,160 level is needed for more gains in the coming sessions.
Conversely, Bitcoin might decline once again from $10,080 and $10,160. In the mentioned case, the trend line support near $9,800 could play an important role.
If the bears push the price below $9,800 and $9,700, there is a risk of another sharp decline in the near term. The next key support is seen near the $9,400 area.