Story by: Aayush Jindal
- Bitcoin price is declining and it recently traded to a new monthly low at $7,661 against the US Dollar.
- The price is trading in a downtrend and it is likely to test the $7,500 or $7,200 level in the near term.
- There is a key bearish trend line forming with resistance near $8,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could soon complete the current decline near $7,500 or $7,200 in the coming sessions.
Bitcoin price is showing signs of more downsides below $8,000 against the US Dollar. BTC is likely to find a strong buying interest near the $7,500 or $7,200 support.
Bitcoin Price Analysis
Recently, there was a minor upside correction in bitcoin above the $8,000 level against the US Dollar. The BTC/USD pair even climbed above the $8,200 resistance. Finally, the price spiked towards $8,400, but it failed to gain momentum. Moreover, there was no proper close above $8,200 and the 100 hourly simple moving average. As a result, the price started a fresh decline below the $8,000 support.
It even broke the $7,700 level and traded to a new monthly low at $7,661. Besides, the current price action is bearish, with an immediate resistance near the $7,900 level. Additionally, 50% Fib retracement level of the recent decline from the $8,157 high to $7,661 low is also near the $7,900 level. The main resistance on the upside is near the $8,000 and $8,100 levels. More importantly, there is a key bearish trend line forming with resistance near $8,050 on the hourly chart of the BTC/USD pair.
If the price fails to recover above the $8,000 and $8,100 resistance levels, it could continue to decline. An immediate support is near the $7,600 level, below which the price is likely to test the main weekly bearish target of $7,500. Moreover, if there are more downsides, the price may perhaps test the $7,200 support area.
Looking at the chart, bitcoin is clearly declining and is struggling below the $8,000 level. Therefore, there is a risk of more downsides towards $7,500 and $7,200. Having said that, the bears need to be careful since there could be a strong bounce once the current wave is complete.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 30 level.
Major Support Levels – $7,500 followed by $7,200.
Major Resistance Levels – $8,000, $8,100 and $8,400.by