Bitcoin (BTC) Price Uptrend Intact Despite Recent Corrective Decrease

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price rallied to a new 9-month high towards $7,500 before correcting lower against the US Dollar.
The price declined below the $7,000 support level, but it found strong bids near $6,750.
There is a new connecting bullish trend line forming with support at $6,940 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is currently in an uptrend and it is likely to climb back above $7,200 and $7,250.

Bitcoin price corrected sharply from $7,500 against the US Dollar. BTC tested key supports and it seems like it could bounce back above $7,200 in the coming sessions.

Bitcoin Price Analysis

In the past five days, there was a sharp rally in bitcoin price above the $7,000 resistance area against the US Dollar. The BTC/USD pair even broke the $7,200 and $7,350 resistance levels. The price tested the $7,500 resistance level and settled well above the 100 hourly simple moving average. A swing high was formed $7,590 and recently the price corrected lower sharply. It traded below the $7,200 support level and spiked below the $7,000 pivot level.

The price tested the key $6,700-6,800 support area, and a swing low was formed near the $6,733 level. BTC price recovered nicely and traded above the $7,000 level, and the 23.6% Fib retracement level of the recent decline from the $7,590 high to $6,733 low. However, the price seems to be facing a tough resistance near the $7,150 and $7,160 levels. The 50% Fib retracement level of the recent decline from the $7,590 high to $6,733 low is also acting as a resistance. A clear break above the $7,160 level may open the doors for a fresh increase above $7,200 and $7,250 in the near term.

On the downside, there is a decent support forming near the $7,000 level. Moreover, there is a new connecting bullish trend line forming with support at $6,940 on the hourly chart of the BTC/USD pair. Therefore, the pair remains well supported near the $6,950 and $7,000 levels. Below $6,950, the price could retest the main $6,700-6,800 support area.

Looking at the chart, bitcoin price is clearly in a strong uptrend above the $6,700-6,800 support area. There could be a few swing moves, but the price is likely to climb above $7,200 once again. The next key resistance is near $7,310, above which the next stop for the bulls could be $7,500 and $7,600.

Technical indicators:

Hourly MACD – The MACD is about to move back in the bullish zone, with positive signs.

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

Major Support Levels – $7,000 followed by $6,950.

Major Resistance Levels – $7,160, $7,200 and $7,310.

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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