• Bitcoin price is down more than 8% and it dived below $7,500 against the US Dollar.
• The price is currently correcting higher after trading to a new monthly low near $7,300
• There are two connecting bearish trend lines forming with resistance near $7,450 and $7,660 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The price is trading near key supports and it could correct higher towards $7,660 and $7,700.

Bitcoin price is down around $1,000 this week against the US Dollar. BTC bears need to be careful as there could be a nice recovery in the near term.

Bitcoin Price Analysis

This week, bitcoin failed to clear the $8,300 resistance area against the US Dollar. BTC price started a fresh decline and broke many support near the $8,000 handle.

As a result, the bears took control and the price dived more than 8% in the past three sessions. It broke the $7,800 and $7,600 supports levels. Moreover, there was a clear break below $7,500 and the price settled below the 100 hourly simple moving average.

Finally, a new monthly low was formed near $7,302 and the price is currently correcting higher. It recovered above the $7,400 level, plus the 23.6% Fib retracement level of the recent decline from the $8,021 high to $7,302 low.

At the moment, the price is consolidating above the $7,400 and is facing hurdles. An immediate resistance is near the $7,440 level. Additionally, there are two connecting bearish trend lines forming with resistance near $7,450 and $7,660 on the hourly chart of the BTC/USD pair.

The second trend line coincides with the 50% Fib retracement level of the recent decline from the $8,021 high to $7,302 low. If there is an upside break above the $7,660 resistance, the price could recover towards the $7,800 and $7,880 resistance levels (the previous supports).

On the downside, the $7,380 level is an immediate support. If there is a downside break below $7,380, the price could revisit the $7,300 support area. Any further losses are likely to call for a push towards the $7,200 and $7,120 levels.

Bitcoin Price

Looking at the chart, bitcoin is facing a strong selling interest below $7,800. Having said that, the price is down more than $1,000 this week, which means any further losses might be limited. Therefore, there are chances of an upside correction towards $7,660 and $7,800 in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 30 level.

Major Support Levels – $7,380 followed by $7,300.

Major Resistance Levels – $7,440, $7,660 and $7,800.