- Bitcoin price recovered and moved above the $ 7,000 handle against the US Dollar.
- There is a crucial bearish trend line in place with resistance at $ 7,260 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair has to move past the $ 7,260 hurdle and the 100 hourly simple moving average for more gains.
Bitcoin price is slowly recovering above $ 7,000 against the US Dollar. BTC/USD is likely to struggle near a significant resistance at $ 7,260.
Bitcoin Price Analysis
After heavy declines, bitcoin price found bids near the $ 6,880 level against the US Dollar. The BTC/USD pair traded as low as $ 6,883 and later it started an upside correction. The price moved above the 23.6% Fib retracement level of the last slide from the 7,532 high to $ 6,883 low. More importantly, there was a break above the $ 7,000 handle, which opened the doors for more recoveries.
At the moment, the price is struggling to clear the $ 7,130 level and is consolidating in a range. Above $ 7,130, there is a significant resistance formed near $ 7,260. There is also a crucial bearish trend line in place with resistance at $ 7,260 on the hourly chart of the BTC/USD pair. An intermediate resistance is the 50% Fib retracement level of the last slide from the 7,532 high to $ 6,883 low at $ 7,207. Additionally, the same trend line is positioned with the 100 hourly SMA at $ 7,270. Therefore, there are many resistances aligned between $ 7,210 and $ 7,270.
Looking at the chart, BTC price may perhaps move further above $ 7,130. However, it won’t be easy for bitcoin buyers to clear the $ 7,260 barrier. On the downside, an initial support is at $ 7,000. Below this, the price may possibly move back towards the $ 6,800 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is positioned above the 50 level.
Major Support Level – $ 7,000
Major Resistance Level – $ 7,260