- 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.
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