Key Points
- Bitcoin price is under a lot of pressure and it recently declined below $7,000 against the US Dollar.
- There is a crucial bearish trend line forming with resistance at $8,100 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair may correct a few points towards $8,000, but it will most likely face sellers on the upside.
Bitcoin price remains in a major downtrend below $8,000 against the US Dollar. BTC/USD could correct higher, but it is likely to many hurdles on the upside.
Bitcoin Price Downtrend
There was a major decline this past week from well above $9,000 in bitcoin price against the US Dollar. The price tumbled and declined below many important support levels such as $8,000 and $7,000. It even traded close to the $6,500 level. A low was formed at $6,563 before it found bids. A minor upside correction was initiated from the $6,563 low, but upsides are likely to be capped.
An initial resistance is around the 23.6% Fib retracement level of the last decline from the $9,220 high to $6,563 low. More importantly, there is a crucial bearish trend line forming with resistance at $8,100 on the 4-hours chart of the BTC/USD pair. Below the trend line resistance, the 50% Fib retracement level of the last decline from the $9,220 high to $6,563 low is positioned near the $7,894 level. Lastly, the 100 simple moving average (4-hours) is around the $8,100 level to act as a major barrier for buyers.
On the downside, the $6,600 level is a decent support. A break below the same could ignite a downside wave towards $6,000. Overall, there could be an upside correction towards the $8,000 level, but it will most likely face sellers.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is slowly moving back in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently moving higher from the 35 level.
Major Support Level – $6,600
Major Resistance Level – $8,000
Charts courtesy –Trading View
