Bitcoin is currently recovering from the $8,512 weekly low against the US Dollar. However, BTC price is still facing many key hurdles near $9,000 and it could resume its decline.<\/p>\n
This week, we saw a strong downward move in bitcoin below $9,000 and $8,800 against the US Dollar. BTC price even traded below the $8,680 support level and settled well below the 100 hourly simple moving average.<\/p>\n
A new weekly low is formed near $8,512 and the price is currently correcting losses. It surpassed the $8,700 resistance level, and the 23.6% Fib retracement level of the downward move from the $9,281 high to $8,512 low.<\/p>\n
On the upside, there are many resistances forming near the $9,000 and $9,200 levels. More importantly, there is likely a bearish flag forming with support near $8,735 on the hourly chart of the BTC\/USD pair.<\/p>\n
Bitcoin Price<\/p>\n
Bitcoin is currently struggling near the 50% Fib retracement level of the downward move from the $9,281 high to $8,512 low. The first key resistance is near the flag resistance at $9,000.<\/p>\n
If the bulls gain strength above $9,000, the next important breakout zone is visible near the $9,200 level and the 100 hourly SMA. Therefore, the price must climb above the $9,000 and $9,200 levels to start a fresh increase in the coming sessions.<\/p>\n
If bitcoin fails to correct above the $9,000 and $9,200 resistance levels, it is likely to resume its decline. An initial support is near the flag trend line at $8,735.<\/p>\n
A successful break below the flag support could open the doors for a fresh decline below $8,700 and $8,600. In the mentioned case, the price could even decline below the $8,512 swing low.<\/p>\n
The next major support and buy zone is near the $8,200 level (as discussed yesterday using the daily chart). In the medium term, bitcoin price is likely to bounce back as long as there is no daily close below $8,000.<\/p>\n
Technical indicators:<\/p>\n
Hourly MACD The MACD is slowly moving in the bullish zone.<\/p>\n
Hourly RSI (Relative Strength Index) The RSI for BTC\/USD is currently just below the 50 level.<\/p>\n
Major Support Levels $8,735 followed by $8,500.<\/p>\n
Major Resistance Levels $9,000, $9,200 and $9,280.<\/p>\n
<\/p>\n