This Critical Bitcoin Short-Term Top is Sparking Big Correction Fears
Recently, we saw a rejection in bitcoin near the $9,880 level against the US Dollar. BTC even started a downside extension from the $9,847 swing high and declined below the $9,750 support.
Besides, there was break below the $9,680 level and the 100 hourly simple moving average. It opened the doors for more losses and the price dropped towards the key $9,500 support area, where the bulls emerged.
A swing low is formed near $9,481 and the price is currently correcting higher. It surpassed the 23.6% Fib retracement level of the recent drop from the $9,841 high to $9,481 low.
However, there are many hurdles on the upside, starting with $9,640 and $9,680. More importantly, there is a key bearish trend line forming with resistance near $9,640 on the hourly chart of the BTC/USD pair.
ide, the main support for bitcoin is near the $9,500 area. If there is a downside break and proper close below $9,500, the bears are likely to take over. In the mentioned case, there are chances of more losses towards the $9,200 and $9,050 support levels.
Main Breakout Levels
On the upside, the first key resistance is near the trend line and $9,640. The next one is near the 50% Fib retracement level of the recent drop from the $9,841 high to $9,481 low.
The main hurdle for bitcoin is near the $9,740 level and the 100 hourly simple moving average. Therefore, the bulls need to clear the trend line resistance and gain momentum above the 100 hourly simple moving average to start a fresh increase in the near term. If not, there is a risk of a sharp decline below $9,500.