Key Points
- Bitcoin price remains in a bearish trend and is currently trading around $7,000 against the US Dollar.
- There is a crucial bearish trend line in place with resistance at $7,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must stay above the $7,000 handle to avoid further losses in the near term.
Bitcoin price is under a strong selling pressure below $7,300 against the US Dollar. Let’s see if BTC/USD can hold the $7,000 support level or not.
Bitcoin Price Analysis
There was no major upside recovery above $7,350 in bitcoin price against the US Dollar. The BTC/USD pair corrected higher a few points yesterday, but buyers failed to push the price above the $7,350 and $7,400 resistance levels. As a result, there was a downside reaction and the price broke the last swing low of $7,150. It traded close to the $7,000 level and a low was formed at $7,048.
At the moment, the price is consolidating losses above the $7,000 and it remains at a risk of more losses. An initial hurdle for buyers is near the 23.6% Fib retracement level of the last decline from the $7,445 high to $7,048 low. However, the most significant resistance is close to $7,250, which was a support earlier. The stated $7,250 level is also around the 50% Fib retracement level of the last decline from the $7,445 high to $7,048 low. Above $7,250, there is a crucial bearish trend line in place with resistance at $7,300 on the hourly chart of the BTC/USD pair.
Looking at the chart, the price is clearly struggling to move higher above $7,250 and $7,300. If buyers continue to struggle, bitcoin could drop sharply and it might break the $7,000 support in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is still in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently moving lower towards the 30 level.
Major Support Level – $7,000
Major Resistance Level – $7,250
