Bitcoin price tumbled recently below the $10,000 level against the US Dollar. BTC/USD is currently approaching a short-term break with support at $9400.
Key Talking Points
Bitcoin price declined recently and traded close to the $9000 support (data feed by Kraken) against the US Dollar.
There is a major contracting triangle pattern forming with resistance at $9800 on the hourly chart of BTC/USD.
The pair might soon make the next move either above $9800 or below $9400 in the near term.
Bitcoin Price Chart Analysis
There was a major downside move initiated in bitcoin price from the $11,400 swing high against the US Dollar. The BTC/USD pair declined by more than $1500 and settled below the $10,000 level and the 100 hourly simple moving average.
The pair traded as low as $8988 where buyers appeared and protected further declines in bitcoin. The price started consolidating in a range with a corrective bias above $9000. It moved above the 38.2% Fibonacci retracement level of the last decline from the $11,400 high to $8988 low.
However, the upside move failed near $10,000 and the 50% Fibonacci retracement level of the last decline from the $11,400 high to $8988 low. BTC moved down and traded back below $9500 and the 100 hourly SMA.
It seems like there is a major contracting triangle pattern forming with resistance at $9800 on the hourly chart of BTC/USD. The pair is facing a crucial resistance near $9800 and the 100 hourly SMA. On the downside, the last swing low and the triangle support is around $9400.
Therefore, the pair might soon make the next move and either break $9800 or move down below $9400. Should there be a break above $9800, the price could even break $10,000 and $10,400. Above $10,400, the price might attempt a test of the $11,000 level.
On the downside, a break of the $9400 support may push the price back towards $9000 or even $8600. The hourly RSI for BTC/USD is still below 50 and signaling losses in prices unless there is a break above $9800-10,000.