- 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.
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.
