Key Points
- Bitcoin price is struggling to hold the $7,250-7,300 support area against the US Dollar.
- There are two bearish trend lines formed with resistances at $7,400 and $7,510 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of more losses if it breaks the $7,150 support level.
Bitcoin price is moving further into the bearish zone below $7,400 against the US Dollar. BTC/USD must remain above $7,000 to avoid a sharp decline.
Bitcoin Price Analysis
There were a couple of rejections noted around $7,500 level in bitcoin price against the US Dollar. The BTC/USD pair started a downside move and declined below the $7,400 and $7,300 support levels. It even settled below the $7,400 pivot and the 76.4% Fib retracement level of the last wave from the $7,260 low to $7,648 high. It opened the doors for more losses and the price declined below the $7,260 low.
The current price action suggests a downside break below $7,260 with a bearish angle. At the moment, the price is testing the 1.236 Fib extension level of the last wave from the $7,260 low to $7,648 high. If the price breaks the $7,150 level, there could be more losses towards the $7,000 level. The 1.618 Fib extension level of the last wave from the $7,260 low to $7,648 high is at $7,020 to act as a support. Further below this, the price could decline towards $6,800. On the upside, there are two bearish trend lines formed with resistances at $7,400 and $7,510 on the hourly chart of the BTC/USD pair.
Looking at the chart, the price may struggle to break the $7,300 and $7,400 resistance levels. Only a close above $7,500 could clear the path for a bullish trend in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is now well below the 40 level.
Major Support Level – $7,020
Major Resistance Level – $7,400