Bitcoin price corrected lower sharply from the $10,187 yearly high. BTC/USD declined below the $9,800 support and it is currently consolidating above the $9,700 support.
After forming a short term top near the $10,187 level, the bitcoin price started a downside correction against the US Dollar. The price broke a few key supports near $10,000 and $9,980 to start the current correction.
Looking at the 1-hour chart, the price even settled below the $9,840 support area and the 25 simple moving average (1-hours, orange). The decline was such that the price even tested the $9,700 support area.
The market data is provided by TradingView, Bitfinex.
The recent low is formed near $9,718 and the price is currently consolidating in a range. More importantly, the bitcoin price is currently trading inside a new breakout pattern with support near $9,725 on the 1-hour chart.
On the upside, an initial resistance is near the 23.6% Fib retracement level of the recent slide from the $9,913 high to $9,718 low at $9,765. The triangle resistance at $9,810 is also close to the 25 simple moving average (1-hours, orange).
Moreover, the 50% Fib retracement level of the recent slide from the $9,913 high to $9,718 low is near the $9,816 level. Therefore, an upside break above the $9,820 and $9,840 levels is needed to decrease the current bearish pressure.
The next major resistance is near the $9,920 level, followed by the key $10,000 handle. Conversely, Bitcoin might decline below the key $9,700 and $9,660 support levels.
In the mentioned case, the bears are likely to gain control and bitcoin price is likely to slide further towards the $9,540 and $9,500 support levels in the near term.