Bitcoin dropped by 9.5% this week as the sellers start to take control over the market momentum. It dropped beneath $9,000 a few days ago to reach the current support level at around $8,672.
The cryptocurrency has spiked even further lower but has managed to rebound back above $8,600 to close each day. It also recently broke beneath a rising trend line as the outlook starts to turn bearish.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Looking at the daily chart above, we can clearly see Bitcoin breaking beneath the rising trend line over the past 24-hours of trading. It is currently trading at support at $8,672 which is provided by the .5 Fibonacci Retracement level. The market managed to close above this level yesterday as the buyers battle to regain some form of control.
Short term prediction: NEUTRAL/BEARISH
Bitcoin is still neutral but the recent break beneath the rising trend line is putting it in a tricky situation. A break and close beneath $8,500 will likely to confirm a short term bearish trend moving forward.
If the sellers break beneath the support at $8,672, the next level of support lies at the downside 1.618 Fibonacci Extension level at $8,559. This is then followed by support at $8,500. Beneath this, support is then located at $8,242 (.618 Fibonacci Retracement level), $8,000, and $7,630 (.786 Fibonacci Retracement level).
Toward the upside, resistance is located at $8,800. Above this, higher resistance lies at $8,975, $9,000, $9,270, and $9,500.
Key Levels
Support: $8,672, $8,559, $8,500, $8,250, $8,200, $8,000.
Resistance: $8,975, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.
