Over the previous week, the BTC/USD pair started a major decline after it broke the $9,500 support. BTC then gained bearish momentum below the $9,300 support region and the 100 simple moving average (4-hours). It paved way for more losses and the price even broke the $9,000 support. A new monthly low is formed close to $8,813 and the price is currently making an upside correction. At press time, BTC is down over 2% and is trading at $8,960
The 23.6% Fib retracement level of the recent downtrend from the $9,778 high to $8,813 low is also close to the $9,040 level. Notably, there is a key bearish trend line forming on the BTC/USD 4-hours chart, with resistance near $9,100. The 4-hours MACD for the pair is gaining pace in the bearish zone. Its 4-hours RSI (Relative Strength Index) is also currently well below the 40 level.
On the upside, an initial resistance is seen close to the $9,000 and $9,040 levels. If the BTC price breaks the trend line resistance, it could continue to recover towards the main resistance at $9,300. The 100 SMA (4-hours) is also forming close to the $9,300 resistance area. Therefore, the bulls are likely to face many resistances close to the $9,100 and $9,300 levels in the coming sessions. To begin any decent increase, the price must settle above $9,300 and the 100 SMA.
However, if BTC fails to clear the $9,100 and $9,300 resistance levels, there is a risk of more losses. On the downside, an initial support is seen close to the $8,813 low and $8,800. A successful bearish break below the $8,800 support zone could pave way for a massive decline. In the mentioned bearish scenario, the bears are likely to push the price further downwards towards the $8,500 support level in the near term.