Bitcoin (BTC) Could Rise Again Before Fresh Monthly Low
Bitcoin price is back to where it started and trading below the $7,380 resistance against the US Dollar.
The price is currently under pressure, but it is likely to hold the $7,100 support area.
There is a short term contracting triangle forming with resistance near $7,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could rise again towards the $7,380 and $7,400 resistance levels, where sellers might emerge.
Bitcoin price is back in a bearish zone below $7,400 against the US Dollar. BTC is likely to remain capped below the $7,400 and $7,440 resistance levels.
Bitcoin Price Analysis
Yesterday, bitcoin started a strong rise from the $7,080 support area against the US Dollar. BTC price rallied sharply above the $7,200 and $7,300 resistance levels.
Moreover, it surged above the $7,580 resistance area and the 100 hourly simple moving average. However, it failed to remain above $7,500, resulting in a fresh decrease. The price declined heavily below $7,300 and trimmed most its recent gains.
A swing low was formed near $7,068 and the price is currently consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from the $7,797 high to $7,068 low.
Besides, there is a short term contracting triangle forming with resistance near $7,220 on the hourly chart of the BTC/USD pair. It seems like bitcoin price might break the triangle resistance and trade above the $7,300 resistance.
The next resistance is near the $7,320 level and the 100 hourly simple moving average. The main resistance area is near the $7,360 and $7,380 levels. The 50% Fib retracement level of the recent decline from the $7,797 high to $7,068 low is also near the $7,440 level.
Therefore, a successful break above the $7,440 resistance is needed for a decent rise in the coming sessions. In the mentioned case, the price may perhaps revisit the $7,580 resistance or the 76.4% Fib retracement level of the recent decline from the $7,797 high to $7,068 low.
Conversely, the price could decline again below the $7,180 and $7,150 levels. The main support is near the $7,000 handle, below which there is a risk of a significant decline.
Looking at the chart, bitcoin price is clearly back in a bearish zone, but it could rise again towards $7,380 or $7,400. Finally, it is likely to test or trade below the $7,000 support.
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising and it could move above the 50 level.
Major Support Levels – $7,100 followed by $7,000.
Major Resistance Levels – $7,380, $7,400 and $7,580.
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