Key Points
- Bitcoin price is consolidating below a key resistance at $7,555 against the US Dollar.
- There is a connecting bullish trend line forming with support at $7,390 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- A break below $7,380 could trigger a major downward correction towards $7,100.
Bitcoin price is finding it hard to move past $7,555 and $7,575 against the US Dollar. BTC/USD must stay above $7,380 to avoid a downside reaction.
Bitcoin Price Analysis
Bitcoin price mostly traded in a range above near the $7,400 level against the US Dollar. The BTC/USD pair seems to be struggling to clear the $7,555 and $7,575 resistance levels. It already tested the 38.2% Fib retracement level of the last leg from the $6,668 low to $7,605 high. However, declines were protected and buyers stopped declines below $7,250.
At present, there is a connecting bullish trend line forming with support at $7,390 on the hourly chart of the BTC/USD pair. The pair must stay above the trend line and $7,380 support. If it fails to hold these, there could be a sharp downside reaction towards the $7,140 support. It represents the 50% Fib retracement level of the last leg from the $6,668 low to $7,605 high. Moreover, the 100 hourly simple moving average is positioned near the $7,120 level to act as a strong support.
Looking at the chart, the price is mostly consolidating, but it seems to be losing momentum above $6,400. Therefore, there is a risk of a downside break towards $7,250 and $7,140. If it succeeds in holding the trend line support, it could attempt to break the $7,555 resistance. Above this, bitcoin may well accelerate gains above the last swing high at $7,605.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is mostly flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is just above the 50 level with a few bearish signs.
Major Support Level – $7,380
Major Resistance Level – $7,555
