Key Points
- Bitcoin price declined further and traded below the $7,500 support level against the US Dollar.
- There was a break below a declining channel with support at $7,365 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is finding a strong buying interest near $7,250, which could ignite an upward move.
Bitcoin price declined towards the $7,250 support against the US Dollar. BTC/USD could recover if buyers manage to keep the price above $7,250.
Bitcoin Price Analysis
There were further slides noted below the $7,650 level in bitcoin price against the US Dollar. The BTC/USD pair declined and broke the $7,500 and $7,450 support levels. It seems like buyers failed to keep the price above the $7,500 support, which could be a short term bearish signal. During the decline, there was a break below a declining channel with support at $7,365 on the hourly chart.
The price traded close to the $7,250 support and formed a low at $7,258. At the moment, the price is consolidating gains above $7,255 with positive signs. It is currently testing the broken channel support at $7,365. The 23.6% Fib retracement level of the last decline from the $7,705 swing high to $7,258 low is also near $7,370. Above this, the price is likely to above the $7,400 level. The next key resistance is near $7,500 and a bearish trend line on the same chart. Moreover, the 50% Fib retracement level of the last decline from the $7,705 swing high to $7,258 low is at $7,483. Therefore, there could be a rejection near the $7,500 level.
Looking at the chart, there is an RSI divergence forming, which is signaling a larger upward move above $7,400. Therefore, as long as the price stays above the $7,258 low, it is likely to bounce back above $7,500.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is currently in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is recovering from the 30 level.
Major Support Level – $7,258
Major Resistance Level – $7,500
