Bitcoin has witnessed an increase in selling pressure for the past 2 days below the $10,000 support level. The crypto king broke a few key supports around the $9,800 and $9,600 levels to enter a short term bearish zone.

During the decline, there was a break below a major bullish trend line, with support at $9,580 on the BTC/USD pair daily chart. Bitcoin even declined below the $9,000 support level, as discussed yesterday, and is now heading towards the $8,475 support region. It coincides with the 50% Fib retracement level of the major rally from the $6,425 swing low to $10,521 high.

The next immediate support is seen around the $8,300 level and the 100-day simple moving average (SMA). Therefore, the $8,475 and $8,300 support levels will be a good buying opportunity for the bulls and the price could bounce back sharply.

On the upside, the first major resistance is seen around the $9,000 level. A successful close above this level could likely set the pace for a fresh rally in the coming days.

Many key supports for bitcoin are seen near $8,300 and the 100-day SMA. A drop below these supports could trigger a downside movement towards the $8,000 support area. The 61.8% Fib retracement level of the same wave is also close to $8,000. Therefore, the $8,000 support holds the key. If the price fails to stay above this level, there are chances of a strong decline towards the $7,000 and $6,800 levels.

Technical indicators also suggest that the daily MACD for the BTC/USD pair is slowly gaining momentum in the bearish zone. Daily RSI (Relative Strength Index) for the pair is now well below the 50 level. Major support levels are at $8,475 and $8,300, whereas major resistance levels are also at $9,000, $9,500 and $10,000.