Bitcoin Price Analysis – Bitcoin Lost Key Support Following 18% Drops In Three Days

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• Bitcoin resumes short-term correction after failing to advance above $9200.
• If Bitcoin continues to drop, the next selling target would be $7500

Since our previous crypto trading signals, Bitcoin has seen a huge price movement to the downside following a small bounce to $9200 last week. This time, BTC lost 18% in three days to reach a daily low of $7700. As of now, Bitcoin is priced $7940 with 9.23% losses overnight. We may see more selloff if sellers continue to show strong interest in the market.

Key resistance levels: $8500, $8750
Key support levels: $7700, $7440

Bitcoin (BTC) Price Analysis: Daily Chart – Bearish

After failing to recover above $9200 last week, Bitcoin dropped heavily and broke beneath three months rising trend line (blue) and at the same time wiped major support of $8200 yesterday. Following this price actions, Bitcoin further extends selling to $7700 before bouncing a bit up.

If Bitcoin resumes selling pressure and dropped below the first red line of $7700, the next level to consider as support is the next red line of $7440 – the October 2019 low. However, if the $7700 functions as temporal support, we can expect a recovery to $8500 and $8750 to retest the blue trend line. At the moment, it appeared that sellers are still showing interest in the market.

Bitcoin (BTC) Price Analysis: 4H Chart – Bearish

The latest price drop has led Bitcoin to the lower boundary of the channel that was forming since mid-February. Though the bulls attempted to break the channel last week but failed after a massive supply. However, the bearish trend remains intact in the channel. There’s hope for a retracement.

BTCUSD, 4H Chart – March 9

If Bitcoin continues to respect this descending channel, a possible retracement may reach $8500, where the orange resistance area lies. For that to happen, Bitcoin would need to reclaim $8000 level. Should the price breaks down the channel, especially below $7700, new support may establish around $7500 and below.

BITCOIN SELL ORDER

Sell: $7980
TP: $7700
SL: $8077

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Michael Fasogbon

Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.