Bitcoin is looking a bit worse for wear right now.
Bearish traders have finally succeeded in overcoming the long-standing up-trending support (yellow line) that was first established on May 11, and we now have three red candles in a row on the daily BTC/USD chart for the first time since late June.
During today’s trading session, we can see that bullish traders are now fighting desperately to keep the $9,100 level in play. However, the up-trending support is currently acting as a strong resistance, and we can see on the 4-hour chart (below) that the price action has already thrown back on to this level and ricocheted downward.
On the daily BTC/USD chart, the volume is still dropping on the 20-day MA. On July 15, bears succeeded in driving the price action below the 50-day Exponential Moving Average (EMA).
The RSI continues to print lower highs, with BTC now in the lower quartile of the index channel, at a value of 40.
On the MACD indicator, over the same time frame, we can also see a new bearish divergence between the 12 and 24 moving averages, with increasing selling volume appearing on the histogram.
If bulls can keep the price above $9,100 after today’s close, then it’s likely that we will see the asset to push sideways over the weekend.
If bears continue their assault over Bitcoin and break the $9.1K support, then we will once again look to the psychological $9,000 level as the first support. This also sits around the 0.786 Fibonacci extension level (blue lines), which helped to prop up the price during yesterday’s $190 crash.
Looking down further, we have other potential supports at the 1.0, 1.382, and 1.618 fib extension levels ($8,926, $8,763, and $8,663 respectively.)
Total Market Capital: $274 billion
Bitcoin Market Capital: $168 billion
Bitcoin Dominance Index: 61.2%
*Data by Coingecko
