- Bitcoin (BTC) plunges down to the $8,500 level
- BTC finds a new support level
- Bitcoin fundamentals are still strong, it is likely to start a fresh rally soon
Bitcoin News Today – Bitcoin (BTC) was recently on a slow but steady upward trend and broke over the $9k level. However, the digital currency failed to break over the $9,200 mark and it started correcting lower against the U.S. dollar. BTC plunged and tested the $8,500 support level before it returned back to the $8,600 level.
Bitcoin Finds Strong Support Level
Yesterday, Bitcoin (BTC) experienced a crucial breakout against the US dollar. The price of the digital currency surged higher over the $9k level. However, it was not able to break over the major $9,200 and $9,300 hurdle points. The digital currency formed a new year-to-date high at $9,186 before it started a sharp decline. The digital currency broke below the $9k and $8,800 support marks. Moreover, there was also a break below a major ascending channel with support close to the $8,830 on the one-hour chart of Bitcoin against the U.S dollar.
Bitcoin (BTC) Price Today – BTC / USD
This move paved the way for more losses below the $8,800 support level and the 100-hourly simple moving average. Finally, Bitcoin (BTC) tested major support at the $8,500 mark. fortunately, the bulls took a stand at that point. Bitcoin (BTC) formed a low close to the $8,473 before it started recovering. The price of the digital currency surged over the 23.6 percent Fibonacci retracement level of the previous swing from the high of $9,186 to the low of $8,473.
On the downside, the major upward trend support is close to the $8,500 mark. If the digital currency breaks below the $8,500 support mark, chances are it could plunge further towards the $8k support level. If Bitcoin (BTC) slides below the $8k level, it might start a downward trend in the short-term.
Bitcoin Is More Likely to Start a Fresh Rally Soon
If the world’s largest digital currency by market cap holds gains over the $8,500 support, it is more likely to begin a fresh rally in the near term. At press time, Bitcoin (BTC) is trading at $8,660 after a decrease of more than five percent over the past twenty-four hours. The first major resistance of the coin is close to the $8,800 level and the 100-hourly simple moving average.
Furthermore, the 50 percent Fibonacci retracement level of the previous swing from the high of $9,186 to the low of $8,473 is also close to the $8,830 mark. As such, the digital currency must surge over the $8,880 level to resume its upward trend towards the $9,200 and $9,500 levels in the coming days.