Bitcoin found some form of respite from the recent price decline after finding support at the $8,800 level.
It was also supported by a rising trend line that has been in play for around 2-months of trading.
Bitcoin has been falling ever since it failed to break above resistance at the $10,000 level earlier during the week. It rolled over and dropped by a total of 8% during the week, causing a bloodbath within the entire cryptocurrency market.
It recently found some support around the $8,800 level and is attempting to bounce higher, however, the momentum is certainly within the bullish favour and it is likely that Bitcoin will continue to drop lower.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
BTC/USD – Source: TradingView
Taking a look at the daily chart above, we can clearly see Bitcoin rolling over at the $10,000 as it started the vicious price decline over the past few days. Yesterday saw the printing of a Doji candle which is an indecision candle as the bulls and bears battle for market momentum.
It had found support at a downside 1.414 Fibonacci Extension level and has been trading along with this level for the past couple of days as we wait for the market players to make their next move.
The cryptocurrency has also been supported by the rising trend line that has been in play since the start of the year.
Short term prediction: NEUTRAL
Bitcoin is considered as neutral at this moment in time but is in danger of turning bearish if the sellers break beneath the rising support trend line.
If the sellers break beneath $8,800, we will expect this rising trend line to provide the first level of support. This is followed by support at $8,672 (.5 Fib Retracement), $8,559 (downside 1.618 Fib Extension), and $8,242 (.618 Fib Retracement).
On the other hand, if the buyers push higher, the first level of resistance lies at $8,975. Above $9,000, resistance lies at $9,270, $9,506, $9,741, and $10,000.
Support: $9,800, $8,672, $8,559, $8,242, $8,000..
Resistance: $9,975, $9,000, $9,270, $9,500, $9,637, $9,615, $9,815, $10,000, $10,190, $10,360, $10,474.