Bitcoin price dived to a new monthly low at $8,454 and recently started an upside correction. However, BTC/USD is likely to struggle near a key breakout zone at $8,865-$9,100.
In the past three days, we saw a steady decline in the bitcoin price below $9,000. BTC to USD traded below many key support levels near $8,965 to enter a bearish zone.
Looking at the 1-hour chart, the price extended its decline below the $8,720 support level and spiked below the 25 simple moving average (1-hours, orange). A new monthly low is formed near $8,454 and the price is currently recovering higher.
The market data is provided by TradingView, Bitfinex.
The bulls were able to push the price above the $8,720 resistance, plus the 50% Fib retracement level of the latest decline from the $8,976 swing high to $8,454 low.
Moreover, the bitcoin price surpassed the $8,650 resistance and a key bearish trend line with resistance near $8,845 on the 1-hour chart. It even tested the $8,800 level and the 61.8% Fib retracement level of the latest decline from the $8,976 swing high to $8,454 low.
At the moment, the price is consolidating above the $8,700 level and the 25 simple moving average (1-hour, orange). On the upside, there are many key resistances waiting near the $8,860 and $8,965 levels.
The main resistance level is near $9,105 since it coincides with the 1.236 Fib extension level of the latest decline from the $8,976 swing high to $8,454 low.
Therefore, a successful close above the $9,105 resistance area is needed for a fresh increase. If not, Bitcoin could resume its decline below $8,700 and $8,600. In the mentioned case, there is a risk of more losses below the $8,454 low.