HomeAltcoin NewsBitcoin Price Analysis: BTC Primed For Fresh Increase Above $7,400

Bitcoin Price Analysis: BTC Primed For Fresh Increase Above $7,400

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  • Bitcoin price failed to test the $8,000 resistance and declined below $7,500 against the US Dollar.
  • The price is now trading above the key $7,060 and $7,000 support levels.
  • There is a key bullish trend line forming with support near $7,160 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to bounce back as long as it is above the $7,000 support area.

Bitcoin price is approaching a couple of important uptrend supports against the US Dollar. BTC remains well supported for a fresh increase as long as above $7,000.

Bitcoin Price Analysis

In the past few days, there were swing moves in bitcoin price above the $7,000 support area against the US Dollar. BTC climbed higher above the $7,500 resistance area and the 55 simple moving average (4-hours).

The bulls attempted a run towards the $8,000 level, but the price failed near the $7,690 level. A high is formed near the $7,687 level and the price started a fresh decline.

There was a break below the $7,400 level. Besides, there was a break below the 23.6% Fib retracement level of the upward move from the $6,434 low to $7,687 high.

However, the price is approaching a couple of important supports near the $7,060 and $7,000 levels. Moreover, the 55 simple moving average (4-hours) is also near the $7,100 level to protect the downside reaction.

The 50% Fib retracement level of the upward move from the $6,434 low to $7,687 high is also near the $7,060 level. More importantly, there is a key bullish trend line forming with support near $7,160 on the 4-hours chart of the BTC/USD pair.

Therefore, a downside break below the $7,060 and $7,000 support levels could spark a fresh bearish wave. The next support could be near the $6,730 level. It is close to the 76.4% Fib retracement level of the upward move from the $6,434 low to $7,687 high.

On the other hand, the price could bounce back as long as it is above $7,000. An initial resistance is near the $7,400 level, above which it could start a strong rise towards the $7,680 and $7,720 resistance levels.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is approaching a major support area near the $7,060 and $7,000 levels. Unless the price breaks the $7,000 handle, there are high chances of a fresh increase.

Technical indicators

4 hour MACD – The MACD is slowly losing momentum in the bearish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently below the 50 level, with a bearish angle.

Key Support Levels – $7,060 and $7,000.

Key Resistance Levels – $7,320, $7,400 and $7,500.

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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