Bitcoin Plunge To $8,200 Seems Likely, As Technical Indicators Turn Red

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Bitcoin is trading in a bearish zone below $9,000 against the US Dollar. BTC price is likely to accelerate lower if it breaks the $8,680 and $8,600 support levels.Bitcoin is declining and trading well below the key $9,100 pivot level.The price is likely to continue lower towards the $8,400 and $8,200 support levels.There is a major bearish trend line forming with resistance near $8,910 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair could only avoid losses if it gains bullish momentum above $9,000 and $9,100.Bitcoin Turns RedBitcoin price remained well bid above the $8,680 support and recently corrected higher against the US Dollar. BTC price climbed above the $8,800 resistance level, but it stayed well below the 100 hourly simple moving average.The upward move was capped by the $9,000 resistance zone. It seems like the price failed to surpass the 50% Fib retracement level of the key decline from the $9,305 swing high to $8,645 swing low.More importantly, there is a major bearish trend line forming with resistance near $8,910 on the hourly chart of the BTC/USD pair. Bitcoin is clearly struggling to clear the trend line and the $9,000 resistance level.Bitcoin PriceIf there is an upside break above the trend line resistance, the price could continue to rise towards the $9,100 resistance area. An intermediate resistance is near the $9,050 level or the 61.8% Fib retracement level of the key decline from the $9,305 swing high to $8,645 swing low.To move into a positive zone and avoid more losses, the price must break the trend line resistance and then gain momentum above the $9,100 pivot level in the near term. In the mentioned case, the price could continue to rise towards the $9,330 and $9,500 resistance levels.Bearish Break in BTC?If bitcoin price fails to break the trend line resistance and $9,000, it might slide further. An initial support is near the $8,680 level and the $8,645 swing low.A successful downside break below the $8,645 swing low could spark more losses. The next key support is near the $8,400 level, below which there are chances of a sustained downward move towards the $8,200 level in the coming days.Technical indicators:Hourly MACD – The MACD is about to move into the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and it is approaching the 40 level.Major Support Levels – $8,645 followed by $8,400.Major Resistance Levels – $8,950, $9,000 and $9,100.

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