Story by: Aayush Jindal
- Bitcoin price is down more than 8% and it dived below $7,500 against the US Dollar.
- The price is currently correcting higher after trading to a new monthly low near $7,300
- There are two connecting bearish trend lines forming with resistance near $7,450 and $7,660 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is trading near key supports and it could correct higher towards $7,660 and $7,700.
Bitcoin price is down around $1,000 this week against the US Dollar. BTC bears need to be careful as there could be a nice recovery in the near term.
Bitcoin Price Analysis
This week, bitcoin failed to clear the $8,300 resistance area against the US Dollar. BTC price started a fresh decline and broke many support near the $8,000 handle.
As a result, the bears took control and the price dived more than 8% in the past three sessions. It broke the $7,800 and $7,600 supports levels. Moreover, there was a clear break below $7,500 and the price settled below the 100 hourly simple moving average.
At the moment, the price is consolidating above the $7,400 and is facing hurdles. An immediate resistance is near the $7,440 level. Additionally, there are two connecting bearish trend lines forming with resistance near $7,450 and $7,660 on the hourly chart of the BTC/USD pair.
The second trend line coincides with the 50% Fib retracement level of the recent decline from the $8,021 high to $7,302 low. If there is an upside break above the $7,660 resistance, the price could recover towards the $7,800 and $7,880 resistance levels (the previous supports).
On the downside, the $7,380 level is an immediate support. If there is a downside break below $7,380, the price could revisit the $7,300 support area. Any further losses are likely to call for a push towards the $7,200 and $7,120 levels.
Hourly MACD – The MACD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 30 level.