The price of bitcoin is undoubtedly undergoing hard times at the moment. Presently, the BTC/USD trading pair has fallen below the major support level at $9,500 and now heading for prices at lower lows.
Although about 24 hours back, bitcoin tried to put up a bull rally to inject some liquidity into its markets, such effort was extinguished by a tremendous selling pressure which now threatens to drag prices further below the support at $9,150 area.
In the face of active bearish activities, bitcoin price rallied down the charts by a considerable 6% within the last 48 hours. After touching a week record low at $9,157, the BTC/USD trading pair is testing the support at $9,150 level where major strongholds exist.
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Although the bulls are acting up against this downhill movement, the pair is currently changing hands at $9,156 amid a considerable market cap of $169.62 billion and $18.4 billion 24 hours trading volume.
BTC/USD 4-Hour Price Chart
On the 4-hour timeframe chart, BTC/USD is currently trading at $9,157. The pair is presently testing major support at $9,050. Further plunge below this level is highly undesirable. The immediate level of resistance, in the event that the pair falls below $9,050 lies at the 1.272 Fibonacci retracement level ($8,913).
There are a few activities going on at the 78.2% Fibo levels where the bulls are holding the support level there. The prevailing side, however, will succeed in bringing the price upward a bit towards $9,200 again. If the bulls fail to achieve this action, it may encourage a bearish continuation towards the $8,913 mark.
On the chart above, BTC/USD price action is currently revolving below the mid-level of the Bollinger band indicator. This means selling pressure intends to drag the price further downwards towards the bottom in the long-term.
The Resistance Strength Index (RSI) however, is struggling around the oversold condition at 25.0. Further plunge below this level is a great possibility. At best, we should expect a plunge towards the 20.0 RSI level where the price may be changing hands at around $8,910.