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Bitcoin Price Analysis

Bitcoin (BTC) Breakdown Below $7K Looms, Can Bulls Bounce Back?

Avatar Aayush Jindal 6 months ago
  • Bitcoin price is trading in a bearish zone below the $7,200 resistance against the US Dollar.
  • The price is currently struggling to stay above the $7,000 support area.
  • There is a connecting bearish trend line forming with resistance near $7,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to face a lot of hurdles near $7,120, $7,160 and $7,200.

Bitcoin price is struggling to recover above $7,200 against the US Dollar. Therefore, BTC remains at a risk of a larger breakdown below the $7,000 support.

Bitcoin Price Analysis

Recently, bitcoin extended its decline below the $7,080 support area against the US Dollar. Moreover, BTC price settled below $7,200 and the 100 hourly simple moving average.

Finally, it tested the $7,000 support and formed a new monthly low at $7,008. It is currently consolidating losses above the $7,000 and $7,020 levels. The recent low is $7,032 and an initial resistance is near the $7,080 level.

Besides, the 23.6% Fib retracement level of the downward move from the $7,204 high to $7,008 low is also near the $7,072 level. The first key resistance for bitcoin price is near the $7,120 level.

Additionally, there is a connecting bearish trend line forming with resistance near $7,120 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the downward move from the $7,204 high to $7,008 low is also near the $7,118 level.

Thus, a clear break above the trend line and $7,120 is needed for a decent recovery. The next hurdles are seen near the $7,160 and $7,180 levels. More importantly, an upside break and close above $7,200 is must to start a substantial recovery.

On the downside, an initial support is near the $7,030 level. The main support is near the $7,000 level. If there is a successful break and close below $7,000, the bears are likely to gain strength.

In the mentioned case, the price is likely to accelerate below $7,000 and $6,900. An immediate support is near $6,800, below which the gates could open for a test of the $6,500 support area.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is clearly trading in a downtrend below $7,160 and $7,200. As long as there is no daily close above $7,200, there are high chances of another breakdown below the $7,000 support area.

Technical indicators:

Hourly MACD – The MACD is currently gaining strength in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and it is approaching the 30 level.

Major Support Levels – $7,030 followed by $7,000.

Major Resistance Levels – $7,120, $7,160 and $7,200.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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