Key Points
- Bitcoin price stayed above the $7,200 support and made another upside attempt against the US Dollar.
- There is a short-term bullish trend line in place with support at $7,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is facing a solid resistance near the $7,325 and $7,330 levels.
Bitcoin price is trading in a range above $7,200 against the US Dollar. BTC/USD must clear the $7,325 resistance for more gains in the near term.
Bitcoin Price Analysis
Yesterday, we discussed that bitcoin price could correct lower from $7,300 against the US Dollar. The BTC/USD pair did correct lower and moved towards the $7,200 support. However, sellers failed to push the price further lower towards the $7,130 support area. A swing low was formed at $7,186 later the price traded above the $7,300 level. The price made a few attempts to clear the $7,325 level recently, but buyers failed to gain traction.
There was a downside reaction and the price moved below the $7,250 level. There was also a break below the 50% Fib retracement level of the recent wave from the $7,186 low to $7,324 high. However, declines were once again protected by the $7,200 support area. Moreover, the 76.4% Fib retracement level of the recent wave from the $7,186 low to $7,324 high acted as a support. At the outset, there is a short-term bullish trend line in place with support at $7,240 on the hourly chart of the BTC/USD pair. The pair is holding the trend line and it seems like it could make another attempt to clear $7,325.
Looking at the chart, bitcoin is clearly struggling to break the $7,325 resistance. Therefore, it will either break $7,325 for more gains or decline below $7,200 to test the $7,130 support.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently above the 50 level.
Major Support Level – $7,200
Major Resistance Level – $7,325
