Yesterday, the BTC price struggled to clear the $9,700 and $9,800 resistance levels and dropped by 4%. BTC topped just below the $9,800 level before it started the sharp decline. The price broke the $9,540 and $9,500 support levels to move into a bearish zone. The bears then gained momentum and pushed the price below $9,300.
Moreover, there was also a daily close below the $9,300 level and the 100 hourly simple moving average (SMA). The BTC price tested the $9,200 support level and traded as low as $9,204. It is currently consolidating losses and trading in a range below the $9,200 support level.
It appears there is a short-term contracting triangle forming on the BTC/USD hourly chart, with support near $9,200. The hourly MACD for the pair is slowly moving into the bullish zone. Its hourly RSI (Relative Strength Index) is also currently well below the 40 level.
If there is an upside break above the triangle resistance at $9,280, BTC could test the 23.6% Fib retracement level of the recent downward move from the $9,662 high to $9,204 low. The first major resistance on the upside is near the $9,400 level. It is followed by the 50% Fib retracement level of the recent downward move from the $9,662 high to $9,204 low. To begin any decent rise, the price must break above the $9,500 resistance zone and the 100 hourly SMA.
On the downside, the BTC price is finding strong support near the $9,200 support level. If the bulls fail to defend the $9,200 support, the price could witness another sharp decline in the near term. The next major support is seen close to the $9,000 level. A break below the $9,000 level could pave way for the bears to push the price towards the $8,800 support zone. Any further losses might perhaps call for a push towards $8,500 in the coming sessions.