- Bitcoin price started a fresh decline and traded below the $7,000 support against the US Dollar.
- It is currently showing a few bearish signs below $6,965 and $7,000.
- There is a key contracting triangle forming with resistance near $7,220 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could decline further towards the key $6,600 support before it might start a fresh increase.
Bitcoin price is struggling to remain in a positive zone above $6,800 against the US Dollar. BTC could extend its losses towards $6,600 before the bulls take a stand.
Bitcoin Price Analysis
This past week, bitcoin price made an attempt to gain strength above the $7,300 area against the US Dollar. However, BTC failed to continue higher above the $7,300 area and formed a top at $7,310.
As a result, there was a fresh decline below the $7,200 and $7,000 levels. There was also a close below the $7,000 level and the 55 simple moving average (4-hours). The decline was such that the price traded below $6,800 and a low is formed near the $6,744.
It is currently consolidating losses above the $6,800 level. Bitcoin price seems to be testing the 23.6% Fib retracement level of the recent decline from the $7,310 high to $6,744 low.
The first key resistance on the upside is near the $6,980 level and the 55 simple moving average (4-hours). The next resistance is near $7,030 and the 50% Fib retracement level of the recent decline from the $7,310 high to $6,744 low.
More importantly, there is a key contracting triangle forming with resistance near $7,220 on the 4-hours chart of the BTC/USD pair. A successful break above the $7,030 level is needed for a push towards the $7,220 and $7,300 resistance levels.
Conversely, the price might start a fresh decline below the $6,800 level and the $6,744 swing low. In the mentioned case, there is a risk of a downside thrust towards the $6,600 support area. Any further losses may perhaps initiate a larger decline towards the $6,000 support.
Looking at the chart, bitcoin price is clearly showing a lot of bearish signs below the $7,000 pivot level. Unless there is a rally above $7,030, there are chances of more losses towards the $6,600 support in the near term.
Technical indicators
4 hours MACD – The MACD is struggling to gain pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is currently just above the 40 level.
Key Support Levels – $6,740 and $6,600.
Key Resistance Levels – $6,980, $7,030 and $7,220.