Analyzing the Bitcoin Price Fluctuation
At the start of 2020, the BTC/USD price turned to the downside from its high at $9191. However, the bitcoin price remains tuned to the upside and may secure the bulls close to $8k or $7670.
The price formed a short term top close to the $9191 level before it commenced a downside retracement. It plunged below $9k and $8.8k to get to a declining area. Moreover, the price closed on the day under the support at $8.5k.
There are several supports close to $8.2k and $8k, while the significant support is close to $8k because it is near the 100-day SMA. Therefore, the decline has enough support if there are more corrections.
A Look at the BTC/USD Hourly Chart
The BTC/USD hourly chart reveals the presence of a critical barrier at $8.5k and the formation of a bearish channel or bullish flag with a hurdle close to $8.5k. Therefore, the price needs to incline over the barriers at $8.5k and $8540 for a fresh rise. Additionally, a close over $8.6k could lead to $9k and $9.2k.
The $8k support is a critical bullish area, and a downward move below $8k may result in the immediate critical support close to the $7670 zone. Therefore, if the price closes beneath $7670, or $7.6k, it may currently invalidate the bullish perspective. If it closes beneath the levels, there is a likelihood of the price to retest the support zone at $6.5k.