Bitcoin price analysis: BTC/USD continuing to test key area of support, subject to a break lower
|- Strong area of support is being tested around $8,700-8,500, a break lower is possible.
- Price drifting firmly lower since double top pattern formation last week.
The Bitcoin price is running at its second consecutive trading day of losses on Wednesday, down around 5%. This comes as the trend lower remains evident, as the bearish force retains its dominance. It now down 25% since the highs printed last week, where the market also hit a double top pattern.
BTC/USD broke the neckline as part of the double top formation, had a retest below and has continued its journey south. The price is flirting with a strong zone of bidding, which is touted between $8,700-8,500.
Technically, BTC/USD still looks vulnerable to further downside, as the bears will look to potentially capitalize on the above-mentioned neckline breakout, within the double top pattern. Should the market continue to press lower, there is an underlying ascending trend line, which is tracking around $7,500, where the falling price may be caught. On the flipside, should the price move back higher, resistance is pretty firm between $9,000-9,300.
BTC/USD 4-hour chart
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