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Bitcoin Price Analysis: BTC/USD Testing Crucial Support

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Bitcoin price failed to remain above the $7400 level against the US Dollar. BTC/USD is currently trading near a major support area at $7180-50.

Key Talking Points

  • Bitcoin price failed near $7450 and started a downside move against the US Dollar.
  • There is a monster bullish trend line forming with support at $7150 on the hourly chart of BTC/USD.
  • The pair has to remain above the $7100-7000 region to avoid major declines in the near term.

Bitcoin Price Chart Analysis

There was a downside reaction from the $7800 swing high in bitcoin price (data feed by Kraken) against the US Dollar. The BTC/USD pair declined and moved below the $7400 area to trade close to the $7100 level.

The downside move was protected by the $7100 support and a monster bullish trend line with current support at $7150 on the hourly chart of BTC/USD. The pair recovered from $7115, but failed to move above the 38.2% Fibonacci retracement level of the last drop from the $7785 high to $7115 low.

bitcoin price chart
Cryptocurrency charts and prices provided by TradingView

Moreover, a bearish trend line with resistance at $7350 also prevented gains. The pair is now trading below the 100 hourly simple moving average and $7300.

The bullish trend line at $7150 holds a lot of importance along with the $7100 swing low. Should there be a break below $7150 and $7100, there can be an increase in selling pressure on bitcoin.

On the other hand, if the price manages to hold the $7150-7100 support area, there are chances of it moving back towards $7400.

An initial resistance on the upside is near the 100 hourly SMA, which is currently at $7250. Above $7250, the bearish trend line with resistance at $7350 would act as a strong hurdle for further gains.

Above $7350, the current bearish pressure will most likely decrease and BTC/USD could even trade back above the $7500 level. In the short term, there can be more ranging moves between $7100-7350 before the pair makes the next move.

Trade safe traders and do not overtrade!

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