Bitcoin Price Analysis: Evening star on a weekly chart is an ominous signal for BTC bulls

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  • Bitcoin touched an area below $9,600 during European hours.
  • An Evening Star might signal that BTC is on the verge of a massive sell-off.

Bitcoin resumed a decline after a short-lived recovery attempt. The first digital coin touched a new intraday low at $9,564 and recovered sharply towards $9,640 by the time of writing. BTC/USD is down 3.3% on a day-to-day basis and -2.5% since the beginning of the day.

BTC/USD: Technical picture

Bitcoin is hovering around a pivotal support level of $9,600 that separates a natural correction from a deeper decline that might result in a new downtrend. While it is still early to hit the panic button, a bearish close of the weekly candle will confirm a candlestick pattern “evening star” that has transpired on a weekly chart. 

A sustainable move below $9,600 will open up the way towards $9,300 (38.2% Fibo retracement for the downside move from July 2019 high to December 2019 low). Once it is out of the way, psychological $8,000 will come into focus.

On the upside, a recovery above $10,000 is needed to mitigate the bearish pressure and allow for an extended recovery towards 50% Fibo retracement at $10,150. An ultimate resistance is created by $10,500 with 2020 high set at $10,511.

BTC/USD weekly chart

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