Categories: AnalysisTechnical

Bitcoin (BTC) Price Uptrend Pauses But Not Out of Woods Yet

  • 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.

Technical indicators:

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.

Bitcoin (BTC) Price Uptrend Pauses But Not Out of Woods Yet was last modified: May 23rd, 2019 by Aayush Jindal
Share
Tags: bitcoinbtc

Recent Posts

  • Analysis
  • Bitcoin
  • Crypto
  • Trade

Bitcoin Soars Beyond $11,400 and Outperforms Gold Amid Geopolitical Tensions

Bitcoin has touched a new yearly high above the $11,300 level amidst rising geopolitical risks in the Middle East.

22 mins ago
  • Bitcoin
  • Crypto

Bitcoin up 250% From Bottom, Same Again to $40,000 BTC

A big bullish weekend is usually followed by a red Monday for bitcoin and crypto markets but this has yet…

3 hours ago
  • Technical

With A $20 Million Tron (TRX) BuyBack Plan, Bulls Are Vibrant

Tron (TRX) up 14.7 percent, may flip XLM A $20 million TRX buyback could stir controversy Buying back coins or…

5 hours ago
  • Bitcoin
  • Crypto
  • Market Wrap

Bitcoin Hits New 2019 High as Crypto Markets Top $335 Billion

Crypto markets hit another new 2019 high; Bitcoin surges higher, TRX, NEO climbing, VeChain going vertical.  Market Wrap There has…

5 hours ago
  • Analysis
  • Technical

Bitcoin Price (BTC) Sets New 2019 High: Stage Set For $12K?

There was a fresh increase in bitcoin and it broke the $11,250 resistance against the US Dollar. The price traded…

6 hours ago
  • Analysis
  • Technical

Bitcoin Leading Crypto Market Higher: BCH, XLM, EOS, TRX Price Analysis

The total crypto market cap is currently holding the $300.0B and $310.0B support levels. Bitcoin price is up more than…

7 hours ago