Bitcoin Breaks Beneath Rising Trend Line – More Bearish Pressure On The Way?


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Bitcoin Breaks Beneath Rising Trend Line – More Bearish Pressure On The Way?

  • Bitcoin saw a 9.5% price decline this week as the cryptocurrency slipped below $9,000 to reach as low as $8,500.
  • It recently broke beneath a 2-month-old rising trend line as the market outlook starts to look ever more bearish.

Bitcoin dropped by 9.5% this week as the sellers start to take control over the market momentum. It dropped beneath $9,000 a few days ago to reach the current support level at around $8,672.

The cryptocurrency has spiked even further lower but has managed to rebound back above $8,600 to close each day. It also recently broke beneath a rising trend line as the outlook starts to turn bearish.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

cg-btcusd-feb29
BTC/USD – Source: TradingView

Market Overview

Looking at the daily chart above, we can clearly see Bitcoin breaking beneath the rising trend line over the past 24-hours of trading. It is currently trading at support at $8,672 which is provided by the .5 Fibonacci Retracement level. The market managed to close above this level yesterday as the buyers battle to regain some form of control.

Short term prediction: NEUTRAL/BEARISH

Bitcoin is still neutral but the recent break beneath the rising trend line is putting it in a tricky situation. A break and close beneath $8,500 will likely to confirm a short term bearish trend moving forward.

If the sellers break beneath the support at $8,672, the next level of support lies at the downside 1.618 Fibonacci Extension level at $8,559. This is then followed by support at $8,500. Beneath this, support is then located at $8,242 (.618 Fibonacci Retracement level), $8,000, and $7,630 (.786 Fibonacci Retracement level).

Toward the upside, resistance is located at $8,800. Above this, higher resistance lies at $8,975, $9,000, $9,270, and $9,500.

Key Levels

Support: $8,672, $8,559, $8,500, $8,250, $8,200, $8,000.

 

Resistance: $8,975, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.

Author: Yaz Sheikh
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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