Bitcoin price extended its decline below the $9,430 and $9,400 support levels. BTC/USD tested the $9,120 area and it seems like upsides are likely to remain capped near $9,400.
This week, the bitcoin price mostly traded with a bearish bias below the $9,700 and $9,650 levels against the US Dollar. BTC to USD even failed to stay above the $9,430 support area and entered a bearish zone.
Looking at the 1-hour chart, the price broke many key supports near $9,400 and settled below the 25 simple moving average (1-hours, orange). Finally, there was a break below the $9,300 level and the price traded as low as $9,133.
The market data is provided by TradingView, Bitfinex.
It is currently correcting higher and trading above the $9,200 level. An initial resistance is near the 23.6% Fib retracement level of the downside thrust from the $9,690 high to $9,133 low.
More importantly, the bitcoin price is following a declining channel with resistance near $9,265 on the 1-hour chart. Above the channel resistance, the main hurdle for the bulls is near the $9,410 and $9,430 levels.
Besides, the 25 simple moving average (1-hours, orange) is also positioned near the $9,400 area along with the 50% Fib retracement level of the downside thrust from the $9,690 high to $9,133 low.
Therefore, an upside break above the $9,400 and $9,430 levels is needed for a decent start of an upward move. The next major resistance is seen near the $9,700 level.
Conversely, Bitcoin might continue to move down below $9,200. Initial support is seen near the $9,130 level. If the price fails to stay above $9,130 and $9,100, there is a risk of a sharp drop below the $9,000 handle in the coming sessions.