Key Points Bitcoin price extended its downside correction and declined below $7,400 against the US Dollar. There was a break below a major ascending channel with support at $7,520 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is now trading well below the $7,550 pivot level and the 100 hourly simple moving average.
Bitcoin price has moved into a short-term bearish zone below $7,550 against the US Dollar. BTC/USD could correct higher, but upsides are likely to be capped.
Bitcoin Price Analysis
After trading above the $7,700 level, bitcoin price faced selling pressure against the US Dollar. The BTC/USD pair topped at $7,779 and started a downside move. The price declined and moved below the $7,600 and $7,500 support levels. The most important move was a close below the $7,550 pivot level and the 100 hourly simple moving average.
Moreover, there was a break below a major ascending channel with support at $7,520 on the hourly chart of the BTC/USD pair. The pair even moved below the $7,400 level a formed a new intraday low at $7,369. At the moment, the price is consolidating losses around $7,400. An initial resistance is around the 23.6% Fib retracement level of the last decline from the $7,779 high to $7,369 low. Any further gains could push the price towards the $7,550 pivot level, which is a major barrier. Additionally, the 50% Fib retracement level of the last decline from the $7,779 high to $7,369 low is at $7,574.
Looking at the chart, the price likely moved into a short-term bearish zone below $7,550. To initiate a fresh bullish wave the price has to move past $7,550 and settle above the 100 hourly SMA. On the downside, supports are seen at $7,350 and $7,250.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is recovering from the oversold levels.
Major Support Level – $7,250
Major Resistance Level – $7,550
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