Bitcoin price failed to surpass the $10,275 resistance and reversed its gains. BTC/USD is back below $10,000 and it is now at a risk of more downsides below $9,500.
Yesterday, there were high chances of a fresh high if the bitcoin price cleared the $10,275 hurdle against the US Dollar. However, BTC to USD failed to continue higher above $10,275 and started a major decline.
Looking at the 1-hour chart, the price nosedived below the $10,000 and $9,820 support levels. Besides, there was a clear break below the $9,740 level and the 25 simple moving average (1-hours, orange).
The market data is provided by TradingView, Bitfinex.
The decline was such that the price traded below the 76.4% Fib retracement level of the upward move from the $9,501 low to $10,276 high. It opened the doors for more losses below the $9,501 swing low.
Finally, the bitcoin price spiked below the $9,350 level and traded close to the $9,300 level. It seems like the price tested the 1.236 Fib extension level of the upward move from the $9,501 low to $10,276 high.
Recently, the price recovered above the $9,500 and $9,520 level. At the moment, BTC is trading inside a short term declining channel with resistance near $9,620 on the 1-hour chart.
If there is an upside break above the $9,620 and $9,650 levels, the price could continue to recover. However, there are many key hurdles on the upside near $9,740 and $9,820, above which the bulls are likely to gain control.
Conversely, if bitcoin fails to recover above $9,740 and $9,820, there is a risk of more losses below the $9,520 and $9,500. In the mentioned case, there is a risk of a drop below $9,300 and $9,250.