Bitcoin price formed a short term top near $10,200 and declined recently against the US Dollar. BTC might continue to decline, but the bulls are likely to remain active above $9,500. Bitcoin is slowly correcting lower below $10,000 and $9,850 against the US Dollar. The price even broke the $9,800 area and it might extend its downside correction. There is a key declining channel forming with resistance near $9,785 on the hourly chart of the BTC/USD pair (data feed from Kraken). There are chances of a bearish spike towards $9,500 before the bulls take a stand. Bitcoin Could Extend its Correction Recently, we saw a break above $10,000 in bitcoin against the US Dollar. However, BTC price failed to clear the $10,200 resistance and a new 2020 high was formed near $10,201. The price started a downside correction below the $10,000 level and the 100 hourly simple moving average. Moreover, the bears were able to lead the price below the 50% Fib retracement level of the upward move from the $9,659 low to $10,201 high. The recent decline was such that bitcoin even traded below the $9,850 support level. At the outset, there is a key declining channel forming with resistance near $9,785 on the hourly chart of the BTC/USD pair. Bitcoin Price More importantly, the price is trading below the 76.4% Fib retracement level of the upward move from the $9,659 low to $10,201 high. Therefore, there is a risk of a downside extension below the $9,659 swing low in the near term. The next major support for bitcoin bulls is seen near the $9,530 and $9,500 levels. In addition, the 1.236 Fib extension level of the upward move from the $9,659 low to $10,201 high is also near the $9,530 level. Any further losses could set the pace for a larger bearish wave, possibly towards the $9,200 support area in the near term. Bulls Are Still In Control The recent decline in bitcoin could be seen as a part of a downside correction from the $10,201 swing high. The $9,500 support area could play a major role in the near term. Its only when the price tumbles below $9,200 and $9,000, the bulls need to start worrying for a trend change to bearish. Technical indicators: Hourly MACD – The MACD is slowly gaining momentum in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is sliding and it is now below the 40 level. Major Support Levels – $9,650 followed by $9,530. Major Resistance Levels – $9,850, $10,000 and $10,200. The post appeared first on NewsBTC.

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