- Bitcoin price started a downward correction after trading as high as $7,605 against the US Dollar.
- There was a break below a key ascending channel with support at $7,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The BTC/USD pair may perhaps correct further lower towards the $7,200 and $7,120 support levels.
Bitcoin price struggled near the $7,580 level against the US Dollar. BTC/USD is correcting lower, but it remains supported above the $7,100 level.
Bitcoin Price Analysis
Bitcoin price traded a few points above the $7,550 resistance against the US Dollar. The BTC/USD pair tested the $7,600 area where sellers prevented further upsides. A high was formed at $7,605 before the price started a downside correction. It declined below the $7,400 support to move into a short-term bearish zone. During the decline, there was a break below the 23.6% Fib retracement level of the last wave from the $6,673 low to $7,605 high.
Additionally, there was a break below a key ascending channel with support at $7,420 on the hourly chart of the BTC/USD pair. The pair tested the $7,250 level and 38.2% Fib retracement level of the last wave from the $6,673 low to $7,605 high. At the moment, the price is consolidating above the $7,250 level. If the price declines further, it could test the $7,140 support, which is the 50% Fib retracement level. Further below this, the price may well accelerate correction towards the $7,000 support.
Looking at the chart, the price is currently struggling to gain momentum above $7,400. Therefore, there is a risk of a downside push, but bitcoin is likely to find buyers near $7,140 and $7,100. On the upside, a break above $7,400 will likely push the price back towards the $7,580 resistance.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is holding the 50 level.
Major Support Level – $7,140
Major Resistance Level – $7,580