- There was a sharp decline in bitcoin below the $8,000 and $7,500 supports against the US Dollar.
- The price is currently correcting losses, but remains at a risk below $7,400.
- There is another breakdown pattern forming with support near $7,240 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The price is currently trading below the $7,500 resistance and likely to decline further.
Bitcoin price is trading in a strong downtrend below $7,500 against the US Dollar. BTC is likely to continue lower towards the main $6,500 bearish target.
Bitcoin Price Weekly Analysis (BTC)
This past week, bitcoin started a nasty decline below the $8,000 support area against the US Dollar. As a result, BTC price gained bearish momentum below the $7,800 support and the 100 simple moving average (4-hours).
It opened the doors for more losses and the price even declined sharply below the $7,500 support. Moreover, the price tested the $7,000 support area (the first bearish target as per the medium term outlook).
Finally, the price spiked below $6,900 and a new multi-month low was formed near the $6,776 level. At the outset, bitcoin price is correcting higher and recently traded above the 23.6% Fib retracement level of the last decline from the $8,213 high to $6,776 low.
However, the upward correction is facing resistance near the $7,400 level. Additionally, there is another breakdown pattern forming with support near $7,240 on the 4-hours chart of the BTC/USD pair.
If there is a downside break below $7,240 and $7,200, there are chances of more downsides in the near term. In the mentioned case, the price is likely to break the $7,000 support and $6,800 level. The main target for the bears seem to be the $6,500 support area.
On the upside, the price must break the triangle resistance and $7,400. Besides, the 50% Fib retracement level of the last decline from the $8,213 high to $6,776 low is near the $7,500 level.
The key resistance is near the $7,550 level and a connecting bearish trend line on the same chart. A clear break above the $7,500 and $7,550 resistance levels could set the pace for more gains.
Looking at the chart, bitcoin price is likely setting up for another breakdown below the $7,200 and $7,000 support levels. Conversely, a close above $7,550 is needed for a correction towards the $8,000 level in the coming days.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering, but it is well below the 40 level.
Major Support Level – $7,000
Major Resistance Level – $7,550
