Bitcoin is fighting a see-sawing battle as the price has once again fallen below crucial support at $9,000. On November 8, Bitcoin hit $8,660 but recovered by $500 to move above the $9,100 area.
Bitcoin was trading on a strong wicket above the key support of level of $9,000. A high was formed near $9,146, but somehow it lost steam and started retreating in the last few days. Bitcoin price broke the $9,000 support area and the 100-hourly SMA. Additionally, there was a break below the 23.6% Fib retracement level of the recent wave from the $8,674 low to the $9,146 high.
At the time of writing, Bitcoin is trading at $8,757.
Earlier last week, after nearly two weeks of bullish consolidation between $9,000 and $9,500, Bitcoin walked a tightrope below the major psychological support level of $9,000.
Ever since the history-making surge of 42% on October 25, Bitcoin was trading strongly above $9,000. However, on November 8, it lost its northward momentum and started moving south.
In a few hours, Bitcoin lost more than 6% of its value, tanking from around $9,250 to below $8,700 in a strong move.
It eventually went down to $8,660, before making a u-turn. After a strong come back, Bitcoin once again lost steam and is on its way down.
According to analysts, the latest correction in the Bitcoin price will test several resistance levels, where the first level of resistance is around $8,880, 38.2% Fib level, before reaching the $9,000 – $9,100 area. Further above is the $9,200 level (along with the 200-days moving average line). This is followed by a strong resistance area at $9,400 – $9,500.
On the upside, the recent support area near the $9,000 level could act as a resistance. Besides, the 100 SMA is a major hurdle near the $9,100 level. Therefore, Bitcoin needs a successful close above $9,100 for more gains in the near-term.
On the downside, Bitcoin will now test several support levels, where the first support lies at Friday’s low of $8,660, along with the 50-days MA at $8,600. Further below lies $8,400 and the ascending trend-line (currently around $8,200).
Meanwhile, technical experts say that the spot extends its range play in a potential ascending triangle formation, now teasing the pattern breakdown, as it flirts with the rising trendline (pattern) support at $8,758. The selling pressure will intensify on the breakdown, opening floors towards a retest of the two-week lows reached last Friday.