After hovering around $9500 for quite some time, Bitcoin is currently correcting lower and is trading below the crucial support level of $9,400 against the US Dollar. There was an extended downside correction below the $9,200 support area and even traded below the $9,100 level and formed a new low at $9,045.
Since then, the price recovered from $9,045 and traded above the $9,200 resistance area. At the time of this writing, the king coin is trading at $9255.
Though the king coin made some efforts to break a major resistance level of five-figure mark yesterday, the resistance was too strong.
Experts are of the view that after any huge surge, there will be a pullback and price does not move in a straight line. So, these dips are expected. The price is likely to decline further towards $8,700 before it could rise again. They say that Bitcoin price must surpass the $9,460 and $9,500 resistance levels to start fresh surge again.
According to market analysts, yesterday’s highlighted key bearish trend line is intact with resistance near $9,460 on the chart of the BTC/USD pair. The 100 hourly SMA is also near the trend line and $9,500. Therefore, a clear break above the trend line and the 100 hourly SMA could open the doors for a fresh increase above the $9,500 resistance. The next key resistances are near the $9,725 and $9,880 level.
On the downside, there are many supports near the $9,040 and $9,000 levels. It seems like the price could spike below the $9,000 support area and test $8,800 or $8,700. Once the current wave completes near the $8,800 or $8,700 support, the price is likely to bounce back in the coming sessions.
Technical experts are of the view that Bitcoin is clearly facing a lot of hurdles near the $9,460 and $9,500 level. Unless there is a close above $9,500, there is a risk of an extended drop towards the $9,000 and $8,800 support levels in the near term. Conversely, a successful close above $9,500 is likely to start another fresh bullish wave towards the $9,800 and $9,950 level.