Bitcoin price remained in a bearish zone and declined heavily below $9,000. BTC/USD even traded close the $8,550 and it is currently correcting higher.

Key Findings:

• Bitcoin is down more than 5% and it broke the $8,800 and $8,640 support levels.
• BTC/USD is now following a key bearish trend line with resistance near $8,900 on the 1-hour chart.
• The price is currently correcting higher, but upsides are likely to remain capped near $8,900.

Bitcoin Price Analysis

In the past few hours, the bitcoin price gained bearish momentum below the $9,000 support against the US Dollar. BTC to USD declined heavily and even broke the $8,800 support level.

Looking at the 1-hour chart, the price settled below the $9,000 level and the 25 simple moving average (1-hours, orange). Finally, there was a break below the $8,640 level and the price traded as low as $8,554.

The market data is provided by TradingView, Bitfinex.

It is currently correcting higher above the $8,700 and $8,800 levels. It even recovered above 23.6% Fib retracement level of the recent dive from the $9,313 high to $8,554 low.

However, there are many hurdles on the upside, starting with the $8,872 level. The first key resistance is near the $8,900 level and the 25 simple moving average (1-hours, orange).

More importantly, the bitcoin price is now following a key bearish trend line with resistance near $8,900 on the 1-hour chart. The trend line is close to the 50% Fib retracement level of the recent dive from the $9,313 high to $8,554 low.

Therefore, the price must settle above the $8,900 resistance area and the 25 SMA to start a fresh increase. In the mentioned case, the price could recover towards the $9,120 and $9,150 levels.

Conversely, Bitcoin may perhaps fail to continue above the $8,900 resistance level. In the stated bearish case, the price could resume its decline below $8,700. The next major supports are seen near the $8,550 area, below which it could dive towards the $8,220 level.