It appears that Bitcoin is still consolidating, a phase that started around 10 days ago. Ever since it hit the history-making 42% gain on October 25 in a matter of hours, Bitcoin had been trading sideways between the $9,200 – 9,800 range. Now, it has broken major support at $9,200 and is now trading at $9,016.
In the last few days, the Bitcoin price struggled to rebound and is now declining below the $9,200 support area.
According to experts, the price was likely to decline further if it broke support at $9,120. The Bitcoin price is now showing bearish signs below $9,300 and $9,240.
According to technical analysis, there has been a steady decline in the Bitcoin price from the high at $9,440. The last swing high was near $9,374 before the price declined below support at $9,300. Besides, there was a close below $9,300 and the 100-hourly SMA. Finally, the price spiked below support at $9,120 and traded as low as $9,084.
Analysts say that Bitcoin is currently correcting higher above the $9,120 level. Additionally, it surpassed the 50% Fib retracement level of the recent decline from the $9,374 high to the $9,084 low. However, the price is facing a lot of hurdles on the upside, near the $9,240 and $9,300 levels.
More importantly, there is a major bearish trend line forming with resistance near $9,240. The 61.8% Fib retracement level of the recent decline from the $9,374 high to the $9,084 low is also capping the upward move. Therefore, a successful break above the trend line and a follow-through above $9,300 is needed for a fresh increase. The next key resistance is near the $9,440 area, above which Bitcoin is likely to climb towards the $9,550 and $9,600 levels in the near term.
After breaking through support at $9120, there are chances of more downside below the $9,020 and $9,000 support levels. The next major support is near $8,920, followed by $8,780. Experts say that Bitcoin is trading in a bearish zone below the $9,300 resistance level. Thus, the price remains at risk of a bearish break below $9,120 and $9,020. To move into a positive zone and start a decent upward move, the price must settle above $9,300.