Bitcoin (BTC) Price Primed For Additional Losses Below $7.2K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price is showing bearish signs and still trading below $7,500 against the US Dollar.
The price is facing a lot of hurdles on the upside near $7,500 and $7,600.
There is a major bearish trend line forming with resistance near $7,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price could decline further below $7,300 if it continues to struggle near $7,500.

Bitcoin price is facing an uphill task near $7,500 and $7,600 against the US Dollar. BTC could decline below $7,300 and $7,200 in the near term.

Bitcoin Price Analysis

Yesterday, there was a sharp decline in bitcoin below the $7,800 support area against the US Dollar. As a result, there was a significant drop in BTC price below the main $7,500 support area.

Moreover, there was a close below $7,800 and the 100 hourly simple moving average. Finally, the price traded close to $7,300 and formed a new monthly low at $7,302. It is currently consolidating losses and is trading above the $7,400 level.

On the upside, there are many key resistances for buyers near the $7,500 and $7,600 levels. Additionally, the 23.6% Fib retracement level of the downward move from the $8,327 high to $7,302 low is also near the $7,540 level.

More importantly, there is a major bearish trend line forming with resistance near $7,500 on the hourly chart of the BTC/USD pair. If there is a break above the trend line, the price could face resistance near the $7,600 level.

If there are more upsides, bitcoin may perhaps recover towards the key $7,800 resistance or the 50% Fib retracement level of the downward move from the $8,327 high to $7,302 low. The 100 hourly SMA is also near the $7,880 level to act as a resistance.

Conversely, if the price continues to struggle near $7,500 and $7,600, there could be another decline. An immediate support is near the $7,350 level. If there is a downside break below $7,350, the price could decline towards $7,200 or even $7,120.

Looking at the chart, bitcoin is clearly facing a lot of hurdles near $7,500 and $7,600. Even if there is a break above $7,600, the $7,800 area is a strong barrier for the bulls. Therefore, there are chances of another decline below the $7,302 low in the coming sessions. The next major support is near the $7,050 and $7,000 levels.

Technical indicators:

Hourly MACD – The MACD is about to move back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $7,350 followed by $7,300.

Major Resistance Levels – $7,500, $7,600 and $7,800.

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.
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