Bitcoin (BTC) Relatively Muted, Signs of Further Weakness

  • Bitcoin price is facing a strong resistance near the $ 7,400 and $ 7,460 levels against the US Dollar.
  • The price is approaching the key $ 7,200 and $ 7,160 support levels.
  • There is a short term declining channel forming with resistance near $ 7,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could recover above $ 7,400 as long as there is no daily close below $ 7,200.

Bitcoin price is currently confined in a range below $ 7,400 against the US Dollar. BTC must stay above $ 7,200 and $ 7,000 to start a decent recovery.

Bitcoin Price Analysis

Recently, we saw a downside break in bitcoin below the $ 7,400 support against the US Dollar. Moreover, BTC price settled below the $ 7,400 pivot and the 100 hourly simple moving average.

Finally, the price traded to a new weekly low at $ 7,159 and it is currently correcting higher. The recent high was near $ 7,410 and it seems like the price is struggling to gain strength above the $ 7,410 resistance.

Bitcoin is currently declining and trading below $ 7,400. Besides, there was a break below the 23.6% Fib retracement level of the recent corrective wave from the $ 7,159 low to $ 7,410 high.

An immediate support on the downside is near the $ 7,285 level. Additionally, the 50% Fib retracement level of the recent corrective wave from the $ 7,159 low to $ 7,410 high is near the $ 7,285 level.

If there is a downside push below the $ 7,285 and $ 7,255 levels, the price is likely to retest the $ 7,200 support area. More importantly, if there is a daily close below the $ 7,200 support area, the price may perhaps struggle to even stay above the $ 7,000 support.

On the upside, there are many hurdles waiting near the $ 7,400 and $ 7,460 levels. Besides, there is a short term declining channel forming with resistance near $ 7,380 on the hourly chart of the BTC/USD pair.

Therefore, a clear break above the channel resistance and $ 7,460 is needed for a decent recovery wave. Once the price settles above $ 7,460 and the 100 hourly simple moving average, the bulls are likely to aim the $ 7,630 resistance area.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is currently declining and trading below the $ 7,300 level. It seems like the price could retest the $ 7,200 support area before it could make an attempt to climb above $ 7,400 and $ 7,460 in the near term.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and it now well below the 50 level.

Major Support Levels – $ 7,200 followed by $ 7,000.

Major Resistance Levels – $ 7,400, $ 7,460 and $ 7,630.

Let’s block ads! (Why?)

Analysis – NewsBTC

Leave a Reply

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