Bitcoin Gets Rejected at Resistance, Signaling End of Retracement

The Bitcoin price has been twice rejected by the 0.5 Fib level of the previous downward movement. Afterwards, the price began a downward move and has recently created an hourly bearish engulfing candlestick with considerable volume. The price is still trading above the $9,100 support area, but this is the fourth time that the price has reached it, reducing its strength. Therefore, it is possible that the price will soon break down from this area and possibly create a double bottom near $8,800, or even continue its downward move lower.

The importance of the $9,100 support level was also mentioned by well-known trader @Pierre_Crypt0, who outlined this important support level, above which the price is still trading.

He stated the importance of this level, saying that a breakdown from it could take the price towards $8,800:

Can it hold again? Breaking it would lead to another retest of H4 200 EMA in the 8,800 area. Holding it and ranging here would be ideal for alts during the next couple of hours leading to weekly close. I’ll keep an eye on this.

Retracement Levels

If the $9,100 area fails, the next support levels are found near $8,800 and $8,550, respectively. In regards to the entire upward move beginning on May 21, the $8,800 area is the 0.618 Fib level while the $8,850 area is the 0.765 one. While the price bounced at the $8,800 area,  the recent decrease makes it possible that BTC will fall all the way to the $8,550 area, which would complete an A-B-C correction since the $10,000 high of May 9.

In the long-term, the price has fallen below the possible ascending support line in place since the March 13 low, so a decrease seems likely. The closest support level is found at $8,550, which is the other ascending support line and also a horizontal support level.