Bitcoin price analysis: BTC/USD declines 8% on Tuesday, $8,800 could be the next stop

  • In the long term the path of least resistance is in the upward direction.
  • Bitcoin price is testing the 23.6% Fib retracement level in a downside roll.

Bitcoin price is trading ups and downs after dropping considerably during yesterday’s trading. The downside movement was initiated at $9,854 only to find support $8,664 level. Currently, BTC/USD is exchanging hands at $9,000.

Technically looking at the charts, the 100-simple moving average is above the 200-simple moving average indicating that in the long-term the path of least resistance is in the upward direction. The two moving averages meet at $9,317 to show that the price could consolidate close to $9,500.

Bitcoin price is forming a key bearish trend line $9,050. It is testing the 23.6% Fib retracement level in a downside roll. Bitcoin price could fall further if the upside momentum does not sustain the gains above the 38.2% Fib retracement level with a previous swing high of $9, 854 and a low of $8,869. If the price declines further, the next stop could be the major support level at $8,800.

BTC/USD price hourly chart

BEST BROKERS TO TRADE CRYPTO

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.