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- Bitcoin price is currently consolidating above the $7,200 and $7,150 support levels against the US Dollar.
- The price is likely to climb higher again unless there is a daily close below $7,000.
- There is a key bearish trend line forming with resistance near $7,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair will most likely break $7,240 and $7,300 to start a fresh increase heading into 2020.
Bitcoin price is showing signs of a renewed upward move against the US Dollar. BTC must stay above $7,150 to prepare for another push towards the $7,500 barrier.
Bitcoin Price Analysis
After forming a new weekly high near $7,531, bitcoin price started a downside correction against the US Dollar. The price declined below the $7,400 and $7,300 support levels.
Moreover, there was a close below $7,300 and the 100 hourly simple moving average. Finally, the price dived below the $7,200 support level, but it stayed above the $7,150 support area.
A low is formed near $7,179 and the price is currently consolidating losses above the $7,200 level. An immediate resistance is near the $7,240 level. Besides, there is a key bearish trend line forming with resistance near $7,240 on the hourly chart of the BTC/USD pair.
The next resistance is near the 23.6% Fib retracement level of the recent slide from the $7,531 high to $7,179 low. However, the first major hurdle is near $7,300 and the 100 hourly simple moving average.
A successful break above the $7,300 barrier might push bitcoin price towards the $7,400 resistance level. An intermediate resistance could be $7,355 or the 50% Fib retracement level of the recent slide from the $7,531 high to $7,179 low.
Finally, a follow through above the $7,400 resistance might set the tone for a larger upward move towards the $7,500 and $7,600 resistance levels. Any further upsides may perhaps call for a push towards the $8,000 level.
Conversely, the price might struggle to climb above the $7,300 resistance area and the 100 hourly SMA. In the mentioned case, there is a risk of a bearish breakdown below the $7,200 and $7,150 support levels.
Looking at the chart, bitcoin price seems to be preparing for an upside break above the $7,240 and $7,300 resistance levels. A successful close above the $7,300 level will most likely lead the price towards $7,400 and $7,500.
Technical indicators:
Hourly MACD – The MACD is moving back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now climbing towards the 50 level.
Major Support Levels – $7,200 followed by $7,150.
Major Resistance Levels – $7,240, $7,300 and $7,500.
