HomeBitcoin NewsBitcoin Price Analysis: BTC Breakdown On The Cards

Bitcoin Price Analysis: BTC Breakdown On The Cards

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  • Bitcoin price is under a lot of selling pressure below $7,500 and $7,600 against the US Dollar.
  • The price is likely to tumble if it breaks the $7,200 and $7,030 support levels.
  • There is a crucial contracting triangle forming with resistance near $7,430 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is currently struggling to stay above $7,200 and the contracting triangle support area.

Bitcoin price is trading with a bearish bias below $7,500 against the US Dollar. BTC could start a strong decline if it breaks the $7,030 support area in the near term.

Bitcoin Price Analysis

This past week, bitcoin price made many attempts to clear the $7,600 resistance area against the US Dollar. However, BTC failed to continue above $7,600 and started a fresh decrease below $7,500.

Moreover, there was a break below the $7,450 support area and the 55 simple moving average (4-hours). The bears gained pace and the price traded below the $7,300 level.

The recent low is near $7,150 and the price is currently consolidating losses. An immediate resistance is near the $7,270 level. Besides, the 23.6% Fib retracement level of the recent decline from the $7,651 high to $7,150 low is also near $7,268.

The first key resistance is near the $7,400 level and the 55 simple moving average (4-hours). Additionally, the 50% Fib retracement level of the recent decline from the $7,651 high to $7,150 low is at $7,400.

More importantly, there is a crucial contracting triangle forming with resistance near $7,430 on the 4-hours chart of the BTC/USD pair. Therefore, bitcoin price is clearly facing a lot of hurdles on the upside, starting with $7,270 and up to $7,430.

The main resistance is still near the $7,600 level, above which the price is likely to test the $8,000 resistance area. An intermediate resistance is near the $7,870 level.

On the downside, the triangle support is near $7,200. If there is a daily close below $7,200, the price could accelerate lower towards the $6,840 support area. The next major support is near the $6,515 level.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is currently at a risk of a downside break below the $7,200 and $7,030 support levels. If the bulls fail to push the price above $7,400, the bears are likely to aim $6,840 or $6,515 in the near term.

Technical indicators

4 hour MACD – The MACD is currently gaining momentum in the bearish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently well below the 40 level, with a bearish angle.

Key Support Levels – $7,040 and $6,840.

Key Resistance Levels – $7,270, $7,400 and $7,430.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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