Bitcoin price continues to weaken technically as declines under $9,000 and $8,000 grow stronger.
The 21 and 50 EMA will continue to offer support in the meantime, giving bulls a fighting chance for reclaiming $9,200 support.
Bitcoin price technical health has continued to deteriorate over the last few weeks. There are no signals of growth but on the contrary, Bitcoin keeps sending massive selling signs. Towards the end of last week, a bearish wave swept across the market, cutting short the attempt by Bitcoin bulls to overcome the resistance at $9,350. Instead, Bitcoin tanked to test the support at $9,050.
Meanwhile, Bitcoin is trading at $9,192 after retreating from the weekend high near $9,200. Intriguingly, Bitcoin bulls had stepped above descending trendline resistance. At the time of writing, the largest cryptocurrency is dealing with an increase in selling pressure.
From a technical perspective, the Relative Strength Index (RSI) retreat from the overbought (70) puts emphasis on the strengthening bearish arm. However, the Moving Average Convergence Divergence highlights the potential for a sideways trading action taking over. The MACD is currently holding above the midline and features a slightly bullish divergence.
BTC/USD 1-hour chart
As long as the technical picture remains intact, Bitcoin bulls will have a fighting chance at reclaiming the support at $9,200. Note that the price is holding above both the 50 and 21 Exponential Moving Average (EMA). This means that, even though the technical health of Bitcoin is weakening, bulls have not lost everything yet. They still have the potential to keep Bitcoin above $9,000.
On the downside, another drop under $9,000 could open the Pandora box with losses likely to increase fast towards $7,200. A lower price for Bitcoin is the only way to create demand and bring back buyers into the market. For, the fight to remain above $9,000 will continue to take precedence.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com