Bitcoin (BTC) Breakdown Below $7K Likely, $6.5K Could Be Next

  • Bitcoin price is declining and it is now trading below the $7,200 support against the US Dollar.
  • The price is likely to struggle near the $7,200 and $7,280 levels if it corrects higher.
  • There is a key bearish trend line forming with resistance near $7,190 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at a risk of a downside break below the $7,000 support area in the near term.

Bitcoin price is sliding below key supports against the US Dollar. BTC remains at a risk of more losses below $7,000 and $6,800 if it stays below $7,280.

Bitcoin Price Analysis

Yesterday, we saw an increase in selling on bitcoin below the $7,300 support against the US Dollar. BTC price declined further and broke a few key supports near $7,280 and $7,200.

Moreover, there was a close below the $7,200 support and the 100 hourly simple moving average. Finally, the price spiked below the $7,100 level and tested the $7,080 support.

A low was formed near $7,078 and the price is currently correcting higher. It is trading above the $7,150 level. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $7,297 high to $7,078 low.

An immediate resistance is near the $7,165 level (the recent breakdown support). The first key resistance is near the $7,200 level. Additionally, the 50% Fib retracement level of the recent decline from the $7,297 high to $7,078 low is near $7,190.

More importantly, there is a key bearish trend line forming with resistance near $7,190 on the hourly chart of the BTC/USD pair. Therefore, bitcoin price is likely to struggle near the $7,190 and $7,200 levels.

If there is an upside break above the $7,200 resistance, the price could recover towards the $7,280 resistance. The next major resistance is near $7,340, the 100 hourly SMA, and $7,400.

On the downside, an initial support is near the $7,100 and $7,080 levels. If there is a downside break below the $7,080 area, the bears are likely to aim a clear break below the $7,000 support area in the near term.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is under a lot of pressure below the $7,200 area. Thus, there are high chances of another breakdown below the $7,000 support. The main target for the bears could be $6,600 or $6,500.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently flat near the 40 level.

Major Support Levels – $7,080 followed by $7,000.

Major Resistance Levels – $7,200, $7,280 and $7,340.

     
 
 




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