Bitcoin at Major Crossroads, Can Bulls Protect $7,000?

  • Bitcoin price is just holding the key $7,120 and $7,000 support levels against the US Dollar.
  • A bearish break below the $7,000 support could start a short term downtrend.
  • There are two bearish trend lines forming with resistance near $7,240 and $7,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to tumble if it struggle to recover above $7,400 in the coming sessions.

Bitcoin price is struggling to stay above $7,120 and $7,000 supports against the US Dollar. BTC needs to recover above $7,240 and $7,400 to avoid a strong decline.

Bitcoin Price Analysis

In the past three days, bitcoin price declined steadily from the $7,700 resistance area against the US Dollar. The price broke a few key supports near the $7,400 and $7,300 levels.

Moreover, the price settled below the $7,300 level and the 100 hourly simple moving average. Finally, the price is now trading near the last line of defense above the $7,120 and $7,160 support levels.

A low is formed near $7,117 and the price is currently correcting higher. Besides, it tested the 23.6% Fib retracement level of the recent slide from the $7,689 high to $7,117 low.

On the upside, an initial resistance is seen near the $7,240 level. More importantly, there are two bearish trend lines forming with resistance near $7,240 and $7,400 on the hourly chart of the BTC/USD pair.

An intermediate resistance between two trend lines is near the $7,300 level and the 100 hourly simple moving average. Additionally, the 50% Fib retracement level of the recent slide from the $7,689 high to $7,117 low is near the $7,400 level.

Therefore, a successful close above the $7,400 resistance could start another increase. The next key resistance is near the $7,500 level, above which bitcoin is likely to accelerate towards the $7,700 resistance area.

On the downside, the $7,120 level is a major support. If the bulls fail to defend the $7,120 support, there is a risk of a sharp breakdown below the $7,000 support area. The next supports are near $6,800 and $6,600.

Looking at the chart, bitcoin price is now trading in a short term bearish zone below the $7,300 and $7,400 levels. Having said that, there are possibilities of a decent upward move as long as there is no daily close below $7,120 and $7,000.

Technical indicators:

Hourly MACD – The MACD is about to move into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is slowly rising towards the 50 level.

Major Support Levels – $7,120 followed by $7,000.

Major Resistance Levels – $7,240, $7,300 and $7,400.

     
 
 




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