- After struggling to recover above $7,300, bitcoin price started a fresh decline against the US Dollar.
- The price is currently trading in a bearish zone just above the $7,000 support area.
- There is a key bearish trend line forming with resistance near $7,260 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to accelerate its decline if there is a downside break below the $7,000 support.
Bitcoin price is back in a downtrend below $7,200 against the US Dollar. BTC could continue to move down below $7,000 and $6,880 in the near term.
Bitcoin Price Weekly Analysis (BTC)
This past week, bitcoin struggled to recover above the $7,280 and $7,300 resistance levels against the US Dollar. Moreover, BTC price remained well below the $7,400 level and the 100 simple moving average (4-hours).
The recent decline was such that the price declined below the $7,100 support area. A new monthly low is formed near $7,008 and the price is currently consolidating losses.
An initial resistance is near the $7,100 level. Additionally, the first hurdle is near the $7,165 level or the 23.6% Fib retracement level of the downward move from the $7,668 high to $7,008 low.
The next major resistance is near the $7,280 level. Besides, there is a key bearish trend line forming with resistance near $7,260 on the 4-hours chart of the BTC/USD pair. Above the trend line, the 100 simple moving average (4-hours) is near the $7,340 area.
More importantly, the 50% Fib retracement level of the downward move from the $7,668 high to $7,008 low is near the $7,338 level. Therefore, the $7,280 and $7,340 levels are important hurdles for a decent recovery in the near term.
A clear break above the $7,340 level is likely to open the doors for more upsides above the $7,400 level. On the downside, an immediate support is near the $7,000 level.
If there is a downside break below the $7,000 support, there is a risk of a sharp decline below the $6,880 support. The next major support is near the $6,600 and $6,500 levels, where buyers are likely to appear.
Looking at the chart, bitcoin price is clearly trading below a couple of important resistances near the $7,280 level. The next move could be either a sharp decline below $7,000 or a decent recovery above the $7,280 resistance area.
4 hours MACD – The MACD for BTC/USD is slowly gaining bearish momentum.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still declining and it is approaching the oversold area.
Major Support Level – $7,000
Major Resistance Level – $7,280
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Analysis: Bitcoin Weekly Forecast: BTC Trend Overwhelmingly Bearish published by