- Bitcoin price started an upside correction from the $6,515 low against the US Dollar.
- The price is currently trading near the main $7,240 and $7,370 resistance levels.
- There is a major bearish trend line forming with resistance near $7,160 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to struggle near the $7,240, $7,370 and $7,515 resistance levels.
Bitcoin price is approaching a major breakout resistance near $7,370 against the US Dollar. BTC could either rally above $7,500 or start a fresh decline below $6,900.
Bitcoin Price Analysis
This past week, we saw a nasty dip in bitcoin price from well above $7,500 against the US Dollar. BTC broke many supports near $7,200 and $7,000 to move further into a bearish zone.
Moreover, there was a close below the $7,000 level and the 55 simple moving average (4-hours). Finally, the price traded to a new monthly low at $7,515 and recently started an upside correction.
It broke the $6,800 and $7,000 resistance levels to start the current recovery. Besides, bitcoin price traded above the 23.6% Fib retracement level of the recent decline from the $8,220 high to $7,515 low.
However, the price struggled to break a crucial resistance area near the $7,370 level. It also coincides with the 50% Fib retracement level of the recent decline from the $8,220 high to $7,515 low.
More importantly, there is a major bearish trend line forming with resistance near $7,160 on the 4-hours chart of the BTC/USD pair. Above the trend line resistance, the next hurdle is near the $7,515 level and the 55 simple moving average (4-hours).
Besides, the 61.8% Fib retracement level of the recent decline from the $8,220 high to $7,515 low is also near the $7,565 level. Therefore, the price needs to climb above the $7,370 and $7,565 resistance levels to move into a positive zone.
Conversely, the price could struggle to recover above $7,370 and $7,515. In the mentioned case, the price is likely to resume its decline below the $7,000 and $6,900 levels. The main support is near $6,800, below which the price will most likely tumble below the $6,500 level.
Looking at the chart, bitcoin price is clearly approaching a few important breakout resistances near $7,370 and $7,515. A failure to climb above the $7,515 level could initiate another major decline in the coming sessions.
Technical indicators
4 hour MACD – The MACD is slowly losing momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently struggling near the 50 level and is moving lower.
Key Support Levels – $6,800 and $6,500.
Key Resistance Levels – $7,370, $7,515 and $7,565.
