Analysis

Bitcoin (BTC) Price Weakens Below $7,500: Uptrend Still Intact

  • Bitcoin price formed a double top pattern near $ 8,330 and declined sharply against the US Dollar.
  • The price broke the key supports near $ 8,000, $ 7,650 and $ 7,200 to test the $ 6,800 support area.
  • This week’s followed bullish trend line was breached with support at $ 7,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price tested a crucial support area near $ 6,700-6,800 and bounced back above $ 7,100.

Bitcoin price started a major downside correction below $ 8,000 against the US Dollar. BTC formed a double top pattern, but it is now trading close to a few crucial supports near $ 6,800.

Bitcoin Price Analysis

Recently, bitcoin price made another attempt to climb above the $ 8,330 and $ 8,350 resistances against the US Dollar. The BTC/USD pair failed to climb above $ 8,350 and formed a major double top pattern. As a result, there was a sharp decline below the $ 8,000 support area. Besides, there was a clear break below the $ 7,800 support area and the 100 hourly simple moving average.

More importantly, this week’s followed bullish trend line was breached with support at $ 7,850 on the hourly chart of the BTC/USD pair. The pair declined more than 10% and broke the $ 7,450 and $ 7,000 support levels. It spiked towards the $ 6,650 support area and formed a swing low at $ 6,645. Recently, it recovered nicely above the $ 7,000 level and the 23.6% Fib retracement level of the latest drop from the $ 8,048 high to $ 6,645 low. The price is now trading above $ 7,200, but it is facing a strong resistance near $ 7,350 and $ 7,400.

Moreover, the 50% Fib retracement level of the latest drop from the $ 8,048 high to $ 6,645 low is also acting as a barrier for the bulls. If there is a successful close above $ 7,400, the price could rebound towards the $ 7,700 level. Besides, it might test the 76.4% Fib retracement level of the latest drop from the $ 8,048 high to $ 6,645 low. Conversely, if the price fails to surpass the $ 7,400 resistance, it is likely to decline again. An initial support is near $ 7,000, below which there is a risk of a sharp decline towards the $ 6,800 or $ 6,650 support zone.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly corrected lower significantly below $ 8,000 and $ 7,500. However, the $ 6,800 and $ 6,650 support levels are important buy zones. In the short term, the price could consolidate near $ 7,000 before it starts a fresh increase.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD declined sharply below the 40 and 30 levels.

Major Support Levels – $ 6,800 followed by $ 6,650.

Major Resistance Levels – $ 7,400, $ 7,700 and $ 7,850.

Let’s block ads! (Why?)

Analysis – NewsBTC

Leave a Reply

Your email address will not be published. Required fields are marked *