Bitcoin (BTC) Price Near Inflection Point: Fresh Increase Likely

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin price declined heavily yesterday and traded close to the $6,650 support against the US Dollar.
The price traded as low as $6,645 and it is currently recovering towards the $7,400 level.
There is a key bearish trend line forming with resistance at $7,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair needs to clear the $7,400 and $7,512 resistance levels to start a strong upward move.

Bitcoin price seems to be forming a new support base above $7,000 against the US Dollar. BTC is likely forming a decent bottom and it could climb higher above $7,400 and $7,500.

Bitcoin Price Analysis

Yesterday, we saw a significant downside correction in bitcoin price below the $8,000 and $7,500 supports against the US Dollar. The BTC/USD pair declined heavily and even broke the $7,000 support and 100 hourly simple moving average. Finally, there was a spike towards the $6,650 support area, where buyers emerged. A swing low was formed at $6,645 and the price recently started an upside correction. It traded above the $7,000 and $7,050 resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $8,050 swing high to $6,645 low.

At the moment, the price is trading above $7,200, but it is facing a strong resistance near $7,400. There is also a key bearish trend line forming with resistance at $7,400 on the hourly chart of the BTC/USD pair. Moreover, the price is struggling near the 50% Fib retracement level of the recent decline from the $8,050 swing high to $6,645 low. If there is a proper break above the trend line and $7,420, the price could trade further higher.

An important hurdle is near the $7,512 level and the 61.8% Fib retracement level of the recent decline from the $8,050 swing high to $6,645 low. A successful follow through above $7,512 is likely to set the pace for more gains in the near term. The next key resistances are near the $7,720 and $7,800 levels. On the downside, an initial support is near the $7,200 level. If there are further declines, the price could retest the $7,000 support.

Looking at the chart, bitcoin price is currently trading with a positive bias above the $7,000 support. Therefore, there are high chances of a fresh increase above the $7,400 and $7,500 levels. Only a close below $7,000 could increase bearish pressure in the near term.

Technical indicators:

Hourly MACD – The MACD is back in the bullish zone, with a positive bias.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving higher and is currently above the 50 level.

Major Support Levels – $7,200 followed by $7,000.

Major Resistance Levels – $7,400, $7,512 and $7,720.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.