Bitcoin price is currently correcting higher from the $8,457 low. However, BTC/USD must gain traction above the $8,700 barrier to start a decent recovery.
Recently we saw another dip in the bitcoin price below the $8,500 level. BTC/USD dropped to a new weekly low at $8,457 and is currently consolidating losses.
Looking at the 1-hour chart, the price is slowly correcting higher and trading above the $8,600 level. There was a break above the $8,600 resistance level and the 25 simple moving average (1-hours, orange).
The market data is provided by TradingView, Bitfinex.
It is currently trading nicely above the $8,620 level and the 50% Fib retracement level of the recent slide from the $8,776 high to the $8,457 low. However, the price is facing strong resistance near the $8,680 and $8,700 level.
The 76.4% Fib retracement level of the recent slide from the $8,776 high to the $8,457 low is also near $8,700. Clearly, the bitcoin price is trading near the $8,700 resistance and a key bearish trend line with resistance near $8,845 on the 1-hour chart.
Therefore, the price must break resistance at $8,700 to start a convincing recovery in coming sessions. If there is a proper close above $8,700, the price could continue to rise towards the $8,960 and $9,000 resistance levels.
Conversely, there is a risk of another drop if Bitcoin fails to correct above the $8,700 resistance area. On the downside, initial support is near the $8,600 level and the 25 simple moving average (1-hour, orange).
The main support is near the $8,500 level, below which there is a risk of more losses below the $8,400 area in the near term.