After several unsuccessful attempts to break the $10,000 hurdle, the BTC price started a strong decline yesterday. On its way downward, the price broke many supports near $9,540 and $9,500 to enter a bearish zone (as discussed yesterday). Furthermore, there was a sharp drop below the $9,250 and $9,150 support levels.
The price even dived below $9,000 and settled well below the 100 hourly simple moving average (SMA). A new weekly low is formed at $8,794 and the price is currently consolidating gains. BTC managed to recover above the $9,000 resistance level. It also traded back above the 23.6% Fib retracement level of the recent decline from the $9,842 high to $8,794 low. The hourly MACD for the pair is now in the bullish zone, but it could turn bearish again. Its hourly RSI (Relative Strength Index) is also currently recovering towards the 45 level.
On the upside, there are many resistances forming close to the $9,220, $9,250 and $9,300 levels. There is also a major connecting bearish trend line forming on the BTC/USD hourly chart, with resistance near $9,220. The trend line is near the 50% Fib retracement level of the recent decline from the $9,842 high to $8,794 low. Therefore, the price is likely to face a strong selling interest close to the $9,220, $9,250 and $9,300 levels in the coming sessions.
On the downside, if BTC fails to correct above the $9,150 and $9,250 resistance levels, it is likely to spark a bearish reaction. An initial support is seen close to the $9,000 level. A daily close below the $9,000 level might pave way for another bearish wave. The next major support is near the $8,800 level, below which BTC is likely to dive towards the $8,500 support level. Any further losses may perhaps push the price towards the $8,200 levels in the near term.