Key Points Bitcoin price was not able to move back above $8,000 and declined further against the US Dollar. There are two important bearish trend lines in place with resistance at $7,700 and $7,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is currently moving higher, but it is likely to face a strong selling interest just below $8,000.
Bitcoin price nosedived towards $7,500 against the US Dollar. BTC/USD is currently recovering ground towards a few key barriers like $7,800 and $8,000.
Bitcoin Price Analysis
The past 5-6 sessions were mostly bearish as bitcoin price tumbled below the $8,000 support against the US Dollar. The BTC/USD pair declined sharply and even broke the $7,600 support level. It traded towards the $7,400 level before finding buyers. A low was formed near $7,440 from where a fresh upward correction was initiated and the price moved above $7,600.
The price managed to move above the 38.2% Fib retracement level of the last decline from the $7,970 high to $7,443 low. However, there are many hurdles for buyers around the $8,000 level. At the moment, the 50% Fib retracement level of the last decline from the $7,970 high to $7,443 low is acting as a resistance near $7,700. There are also two important bearish trend lines in place with resistance at $7,700 and $7,800 on the hourly chart of the BTC/USD pair. The second trend line is significant since it is formed via connecting the $8,300 swing high.
Looking at the chart, the price is showing a few positive signs above $7,500. Having said that, a break above the $8,000 barrier is must for buyers to gain control. On the other, if buyers fail to push the price above $8,000, there is a risk of yet another slide back to $7,500.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is struggling to move back above the 50 level.
Major Support Level – $7,500
Major Resistance Level – $8,000