- Bitcoin price broke a significant support at $7,840 and declined towards $7,450 against the US Dollar.
- This week’s highlighted crucial bearish trend line played a key role near $8,260 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Key resistances are forming near the $7,650 and $7,748 levels, which are likely to act as hurdles.
Bitcoin price declined sharply below $7,840 support against the US Dollar. BTC/USD moved into a short term bearish zone with supports at $7,450 and $7,300.
Bitcoin Price Analysis
This week, we followed a significant support at $7,850 for bitcoin price against the US Dollar. The BTC/USD pair continuously failed near the $8,280-8,300 resistance area, resulting in a sharp decline. The price fell below the $8,000 level and settled below the 100 hourly simple moving average. More importantly, this week’s highlighted crucial bearish trend line played an important part near $8,260 on the hourly chart.
The pair even broke the $7,600 support and traded below the $7,500 level. A low was formed was at $7,462 and the price is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $8,209 high to $7,462 low. There is also a key connecting bearish trend line formed with resistance at $7,650. Above this, the most important resistance is near the previous support at $7,840/50. It coincides with the 50% Fib retracement level of the last decline from the $8,209 high to $7,462 low.
Looking at the chart, the price has moved into a short term bearish zone below $7,850. On the downside, the recent low at $7,462 may act as a support. Below this, the price will most likely drop towards the $7,300 support. The overall price formation is currently bearish as long as bitcoin price is below $7,850.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly reducing its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI is recovering from the oversold levels.
Major Support Level – $7,760
Major Resistance Level – $7,748