Bitcoin price traded as low as $8,555 before correcting higher. However, BTC/USD is facing many hurdles and it could slide again below $8,650 in the near term.
Yesterday, we saw a massive drop in the bitcoin price below $8,980 and $8,850. BTC to USD even spiked below the $8,650 support level.
Looking at the 1-hour chart, the price traded to a new weekly low at $8,555 and settled well below the 25 simple moving average (1-hour, orange). Recently, there was an upside correction above the $8,650 level and $8,700.
The market data is provided by TradingView, Bitfinex.
Moreover, there was a break above the 23.6% Fib retracement level of the downside reaction from the $9,314 high to $8,550 low. However, the price is facing a lot of hurdles near the $8,900 level.
It seems like the bitcoin price is struggling to clear a connecting bearish trend line with resistance near $8,845 on the 1-hour chart. The 50% Fib retracement level of the downside reaction from the $9,314 high to $8,550 low is also near the $8,930 level to act as a resistance along with the 25 simple moving average (1-hour, orange).
The main resistance on the upside is near the $8,970 and $9,000 levels, above which the bulls are likely to gain momentum. The next major stop for the bulls could be $9,120 and $9,150.
On the other hand, Bitcoin might start a fresh decline below the $8,700 and $8,650 levels. If there is a close below the $8,650 support, there are chances of a sharp drop below the $8,555 low. In the mentioned case, the price could test the $8,250 support level in the coming sessions.