Bitcoin (BTC) Relatively Muted; Support Estimated Near $8.2K
After struggling to clear the $8,600 and $8,660 resistance levels, bitcoin declined once again against the US Dollar. BTC broke the $8,500 support area and spiked below $8,400. However, the $8,375 region acted as a strong support.
As a result, the price recovered above $8,500, but it failed to settle above $8,600 and the 100 hourly simple moving average. The last swing high was formed near $8,629 and the recent low was near the $8,419 level.
At the outset, the price is currently consolidating above the $8,420 support area. Moreover, it is
trading near the 23.6% Fib retracement level of the latest drop from the $8,629 high to $8,419 low.
On the upside, there are many key resistances near the $8,600 area. An immediate resistance is near the $8,520 level since it coincides with the 50% 23.6% Fib retracement level of the latest drop from the $8,629 high to $8,419 low.
Additionally, the 100 hourly simple moving average is also near the $8,520 level. More importantly, there is a major bearish trend line forming with resistance near $8,525 on the hourly chart of the BTC/USD pair.
Above the trend line, bitcoin price is likely to face another strong resistance near the $8,600 area. The next key resistance is near the $8,660 level, above which the price could start a decent recovery.
Conversely, if the price fails to correct above $8,525 or $8,600, it might resume its decline. An initial support is near the $8,420 area. The next key support region is near the $8,375 level, below which the price is likely to test the $8,200 support area.
Looking at the chart, bitcoin is clearly facing a lot of hurdles on the upside near $8,525 and $8,600. Thus, the bulls might continue to struggle unless they gain strength to surpass $8,600 and $8,600 in the near term.