- Bitcoin price is currently under pressure below the $7,800 support area against the US Dollar.
- The price declined recently and it is currently trading just above the $7,500 support area.
- There is a major declining channel in place with resistance at $8,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline a few points and there might be a strong bounce from $7,420 or $7,200.
Bitcoin price is slowly moving lower towards key supports against the US Dollar. BTC is likely to bounce back from the $7,400 or $7,200 support levels in the near term.
Bitcoin Price Analysis
Recently, bitcoin price struggled to break the $8,100 and $8,050 resistance levels against the US Dollar. The BTC/USD pair failed near $8,050 recently and started a downward move below $8,000 and $7,940. The price is currently under pressure and it broke the $7,800 support area. It even traded below the $7,660 support level and the 100 hourly simple moving average. Finally, there was a break below the $7,600 support and a new swing low was formed at $7,516.
The price is currently consolidating, with an initial resistance is near the $7,780 level. It represents the 50% Fib retracement level of the recent decline from the $8,052 high to $7,516 low. Above $7,780, the price could test the $7,900 resistance level. Moreover, the 100 hourly simple moving average is close to the $7,900 level to prevent upsides. The 76.4% Fib retracement level of the recent decline from the $8,052 high to $7,516 low is also near the $7,925 level. Therefore, the $7,900 area could act as a strong resistance.
More importantly, there is a major declining channel in place with resistance at $8,000 on the hourly chart of the BTC/USD pair. On the downside, the main support is near $7,500, below which the price could test the $7,425 support area. Below $7,425, the price will most likely revisit the key $7,220 support area.
Looking at the chart, bitcoin price is currently facing an increase in selling pressure below the $7,800 support area. The price might correct higher, but sellers may remain active near the $7,780, $7,800 and $7,900 levels. On the downside, the bulls are likely to protect the $7,500 and $7,400 support levels. In the worst case scenario, the price could test the $7,220 support area before starting a solid increase.
Hourly MACD – The MACD is likely to move back in the bullish zone, with a few negative signs.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 40 level, with a flat structure.
Major Support Levels – $7,500 followed by $7,425.
Major Resistance Levels – $7,780, $7,900 and $8,000.
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Author: Aayush Jindal