Bitcoin is down close to 10% and it broke the key $8,000 support against the US Dollar. BTC price is now vulnerable, but the $7,500 support area could spark a decent recovery in the near term. In yesterday’s weekly forecast, we discussed a breakdown pattern in bitcoin and the chances of it hitting the $8,400 level. BTC price not only tested the $8,400 level, but it dived sharply below the $8,200 support. The daily chart suggests that the price broke many important supports, starting with $9,000 and $8,800. The first major support was near the $8,750 level and a major bullish trend line. The next key support was near the 50% Fib retracement level of the main upward move from the $6,442 low to $10,560 high. More importantly, bitcoin price traded below the $8,200 support area (the previous breakout zone) and the 100-day simple moving average. The price is now trading well below the 61.8% Fib retracement level of the main upward move from the $6,442 low to $10,560 high. These are strong bearish signs, suggesting chances of more losses below the $7,800 level. An immediate support is near the $7,500 level (a multi-touch zone), where the bulls are likely to take a stand. If they fail to defend $7,500 and $7,400, the next stop could be $6,500 in the coming days. The current price action suggests bitcoin is under a lot of selling pressure below $8,200 and $8,000. However, the $7,500 support area could be a savior. If the price finds a strong buying interest near the $7,500 area, it could start a decent recovery. On the upside, an initial resistance is near the $8,280 level. The main resistance area is near $8,400 and the 100-day SMA, above which the bulls are likely to aim a test of the $9,000 level. Technical indicators: Daily MACD – The MACD is showing a few contra bullish signs. Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level. Major Support Levels – $7,500 followed by $7,400. Major Resistance Levels – $8,200, $8,400 and $8,500.Bitcoin Price Dives 10%
What are the Chances of a Recovery?
Bitcoin Just Broke $8K: Here Are Important Supports Traders Must Watch was last modified: March 9th, 2020 by Aayush Jindal