Bitcoin failed to extend gains above $9,200 and started a downside correction against the US Dollar. BTC price tested the $8,500 support and it could bounce back.
- Bitcoin price is down more than 5% from the $9,186 high against the US Dollar.
- The $8,500 support area could play an important role in the coming sessions.
- There was a break below a major ascending channel with support near $8,830 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either bounce back from $8,500 or extend its decline towards $8,000.
Bitcoin Holding Key Uptrend Support
Yesterday, we discussed a crucial breakout pattern in bitcoin above $8,500 on the daily chart against the US Dollar. BTC price extended gains above $9,000, but it struggled to clear the main $9,200 and $9,300 resistance levels (as pointed out yesterday).
A new 2020 high was formed near $9,186 before the price started a sharp decline. There was a break below the $9,000 and $8,800 support levels. Besides, there was a break below a major ascending channel with support near $8,830 on the hourly chart of the BTC/USD pair.