- Bitcoin price is struggling to stay above the $7,160 and $7,120 support levels against the US Dollar.
- A successful close below $7,120 could accelerate decline below $7,000.
- There is a key connecting bearish trend line forming with resistance near $7,480 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either accelerate decline below $7,000 or recover to $7,500.
Bitcoin price is showing a few bearish signs below $7,400 against the US Dollar. BTC must stay above $7,120 to avoid a nasty decline below $7,000.
Bitcoin Price Analysis
Yesterday, we saw a downside correction in bitcoin price from the $7,700 resistance area against the US Dollar. The price traded below the $7,400 and $7,300 support levels.
Moreover, the price struggled to stay above the $7,260 support and the 100 hourly simple moving average. It opened the doors for more losses and the price traded close to the $7,160 support.
A low is formed near $7,159 and the price is currently consolidating losses. It seems like there is a short term contracting triangle forming with resistance near $7,240 on the hourly chart of the BTC/USD pair.
Besides, the 23.6% Fib retracement level of the recent drop from the $7,689 high to $7,159 low is near the $7,284 level. More importantly, the 100 hourly SMA is positioned near the $7,300 level.
Therefore, a successful break above $7,240 and $7,300 might start a decent upward move. The next key resistance is near the $7,400 level or the 50% Fib retracement level of the recent drop from the $7,689 high to $7,159 low.
Additionally, there is a key connecting bearish trend line forming with resistance near $7,480 on the same chart. To start a strong upward move, bitcoin price must settle above $7,400 and $7,500.
The next major resistance is near the $7,700 level, above which the price is likely to test the $8,000 resistance. On the other hand, the price could decline further below the $7,160 and $7,120 support levels.
If the bears gain traction below $7,120, there are high chances of a sharp decline below the $7,000 support area. In the mentioned case, the price is likely to revisit the $6,660 area.
Looking at the chart, bitcoin price is showing a few bearish signs below $7,300 and $7,400. However, it could recover as long as there is no daily close below the $7,120 support.
Technical indicators:
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and heading towards the 40 level.
Major Support Levels – $7,160 followed by $7,120.
Major Resistance Levels – $7,300, $7,400 and $7,500.
