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- After a strong decline, bitcoin price found support near $7,000 against the US Dollar.
- The price is now trading near the $7,300 and $7,320 resistance levels.
- There is a major breakout pattern forming resistance near $7,320 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The price could dip a few points, but it is likely to find bids near the $7,180 and $7,050 levels.
Bitcoin price is trading above a few key supports against the US Dollar. BTC seems to be preparing for the next bullish break above $7,300 and $7,400.
Bitcoin Price Weekly Analysis (BTC)
This past week, bitcoin started a downside correction from the $7,500 resistance area against the US Dollar. BTC price traded below the $7,300 support and the 100 simple moving average (4-hours).
However, the decline was protected by the $7,000 support area. A swing low was formed near $6,922 and the price recovered sharply above $7,000. Moreover, there was a break above the 50% Fib retracement level of the downward move from the $7,431 high to $6,922 low.
Bitcoin price is now trading above the $7,200 level and 100 simple moving average (4-hours). On the upside, the $7,300 level seems to be acting as a hurdles. Besides, the 76.4% Fib retracement level of the downward move from the $7,431 high to $6,922 low is at $7,311.
More importantly, there is a major breakout pattern forming resistance near $7,320 on the 4-hours chart of the BTC/USD pair. Therefore, an upside break above $7,320 and a close above $7,400 could start a strong bullish wave.
An immediate resistance is near the $7,460 level, above which the price is likely to rally towards the $7,640 level. An intermediate resistance is near the 1.236 Fib extension level of the downward move from the $7,431 high to $6,922 low at $7,551.
Any further gains could push the price towards the $8,000 resistance area. Conversely, the price might struggle to continue above $7,320 and $7,400. In the mentioned case, the price could dip lower towards the $7,180 support.
The main triangle support is near the $7,050 level, below which the bulls are likely to struggle and the bears could take charge in the near term.
Looking at the chart, bitcoin price is clearly trading with a positive bias above $7,180 and 100 simple moving average (4-hours). Though, a successful break above $7,320 and $7,400 is needed for a nice rally.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly losing bullish momentum.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Level – $7,050
Major Resistance Level – $7,400
