- 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.
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.
