The chances of a sharp decline in BTC price if it fails to clear $9,200 was discussed yesterday. Indeed the BTC/USD pair remained in a bearish zone and it fell significantly below the $9,100 and $9,000 levels. Moreover, the price dropped sharply below the $8,950 level and traded to a new weekly low at $8,914.
However, the price recovered sharply and closed the day above the $9,000 level. The recovery wave was such that BTC managed to surpass the 50% Fib retracement level of the recent downward move from the $9,194 high to $8,914 low.
The BTC price is currently facing a major resistance close to $9,100 and the 100 hourly simple moving average (SMA). There is also a key bearish trend line forming on the BTC/USD hourly chart, with resistance near $9,120. The hourly MACD for the pair is currently gaining pace in the bullish zone. Its hourly RSI (Relative Strength Index) is now well above the 50 level.
The trend line coincides with the 76.4% Fib retracement level of the recent downward move from the $9,194 high to $8,914 low. Therefore, a clear break above the $9,100 resistance and $9,120 could pave way for a fresh increase. The next immediate resistance is close to the $9,180 level. If the bulls manage to break above $9,180, they are likely to aim a sustained upward move towards the $9,500 resistance region in the coming sessions.
However, if the BTC price fails to clear the $9,100 and $9,120 resistance levels, it could start another decrease. On the downside, the main support is close to the $9,000 level. A daily close below the $9,000 support zone will most likely pave way for a sustained downward move towards the $8,800 support or $8,500 in the near term.