- Bitcoin price is still trading above the $7,200 and $7,240 support levels against the US Dollar.
- The price is struggling to climb above the $7,440 and $7,500 resistance levels.
- There is a major breakout pattern forming with resistance near $7,440 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either rally above the $7,500 resistance or it might dive back towards $7,000.
Bitcoin price is likely setting up for the next key break against the US Dollar. BTC must stay above $7,240 to start a strong upward move in the near term.
Bitcoin Price Analysis
Yesterday, bitcoin trimmed gains from well above $7,500 and declined below $7,300 against the US Dollar. Moreover, BTC price broke the $7,200 support area and the 100 hourly simple moving average.
However, the price remained stable above the $7,000 support area. A low was formed near $7,068 and the price started a decent upward move. It broke a couple of important resistances near $7,200 and $7,240.
Besides, the price settled above the $7,240 level and the 100 hourly simple moving average. On the upside, the price seems to be facing a strong resistance near the $7,400 and $7,440 levels.
The last swing high was near $7,487 and the recent low was near $7,256. At the outset, the price is trading above the 50% Fib retracement level of the recent slide from the $7,487 high to $7,256 low.
Though, the $7,400 area is acting as a resistance. Additionally, the 61.8% Fib retracement level of the recent slide from the $7,487 high to $7,256 low is preventing an upside break.
More importantly, there is a major breakout pattern forming with resistance near $7,440 on the hourly chart of the BTC/USD pair. Therefore, an upside break above $7,400 and $7,440 is likely to set the pace for another increase in the near term.
The next major resistance is near the $7,580, above which the price is likely to test the $7,800 area. Conversely, the price could trade below the triangle support at $7,320 and the 100 hourly SMA.
In the bearish case, the $7,240 support holds a lot of importance. If there is a downside break below $7,240, the price is likely to accelerate towards the $7,000 support area.
Looking at the chart, bitcoin price seems to be setting up for the next major bullish break above $7,440. If it fails to climb above $7,440, the bears are likely to take control.
Technical indicators:
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving above the 50 level.
Major Support Levels – $7,320 followed by $7,240.
Major Resistance Levels – $7,440, $7,500 and $7,580.
