Bitcoin Price Analysis: BTC/USD Testing Crucial Support
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.
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.