- Bitcoin price remained in a bearish zone and recently declined below $7,600 against the US Dollar.
- The price retested the $7,500 support area and it is currently consolidating losses.
- There is a key bearish trend line forming with resistance near $7,820 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but the bulls are likely to face resistance near $7,800 and $7,900.
Bitcoin price declined recently below key support levels against the US Dollar. BTC is facing an uphill task and it is likely to struggle near the $7,800 and $8,000.
Bitcoin Price Analysis
Recently, bitcoin price started a major decline below $8,000 against the US Dollar. The BTC/USD pair declined heavily and broke the $7,800 and $7,600 support levels. The pair even broke the $7,800 level and the 100 hourly simple moving average. Finally, there was a break below the $7,550 level and the price tested the key $7,500 support area. A swing low was formed at $7,502 and the price is currently correcting higher.
It is currently testing the $7,700 resistance area and the 23.6% Fib retracement level of the last drop from the $8,131 high to $7,502 low. If there is an upside correction, the price could test the $7,800 resistance area. There is also a key bearish trend line forming with resistance near $7,820 on the hourly chart of the BTC/USD pair. The pair is clearly facing an uphill task near $7,800, $7,850, and the 100 hourly SMA. The next key resistance is near the $8,000 level. Moreover, the 50% Fib retracement level of the last drop from the $8,131 high to $7,502 low is near the $7,850 to act as a resistance.
Therefore, a successful break above the trend line and $7,850 could push the price towards the $8,000 barrier. If there is an upside break above $8,000, the price could move back in a positive zone. Conversely, if there is a downside break below $7,600, the price could retest the $7,500 support area.
Looking at the chart, bitcoin price is clearly under a lot of pressure below $7,800 and $8,000. As long as there is no close above the 100 hourly SMA, the price remains at a risk of more losses below $7,600. On the downside, the main support is near the $7,500. If there is a downside break, the price could trade towards $7,200.
Technical indicators:
Hourly MACD – The MACD is likely to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
Major Support Levels – $7,600 followed by $7,500.
Major Resistance Levels – $7,800, $7,850 and $8,000.