- 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.