Bitcoin (BTC) Price Approaching Key Support, Bears Back In Action
Bitcoin price is declining after it failed to climb above the key $8,300 resistance against the US Dollar.
The price is under pressure and it is now trading below the $8,000 support area.
There was a break below a connecting bullish trend line with support near $8,080 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is approaching a major support area near $7,800, below which there could be a sharp decline.
Bitcoin price is facing a fresh increase in selling pressure below $8,200 against the US Dollar. BTC price could accelerate losses if it fails to stay above $7,800.
Bitcoin Price Analysis
Recently, bitcoin made a few attempts to gain strength above the $8,300 resistance area against the US Dollar. BTC price even spiked above the $8,350 level, but it failed to continue higher.
As a result, a swing high was formed near $8,323 and the price started a fresh decline. During the decline, there was a break below a couple of important supports near $8,100 and $8,200. Moreover, there was a break below a short term ascending channel with support near $8,240 on the hourly chart of the BTC/USD pair.
Finally, bitcoin traded below the $8,100 support area and settled below the 100 hourly simple moving average. It is now trading below the $8,000 level and a low was formed near $7,932.
If there is an upside correction, an immediate resistance is near the $8,000 level. Additionally, the 23.6% Fib retracement level of the recent decline from the $8,323 high to $7,932 low is also near the $8,020 level to act as a resistance.
If there is a decent recovery, the price could test the $8,100 resistance area (the previous support) and the 100 hourly SMA. Besides, the 50% Fib retracement level of the recent decline from the $8,323 high to $7,932 low is near $8,128.
Therefore, the price must climb back above $8,100 and $8,120 to start a fresh increase towards the $8,250 and $8,300 resistance levels. Conversely, if there is no upside break above $8,120, the price could continue to decline in the near term.
Looking at the chart, bitcoin is clearly struggling below $8,020 and $8,120. An immediate support is near the $7,800 area. If the bulls fail to defend the $7,800 support area, there is a risk of a breakdown. The next major support is near the $7,500 area, where the bulls may take a stand.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the oversold area.
Major Support Levels – $7,880 followed by $7,800.
Major Resistance Levels – $8,020, $8,100 and $8,120.
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