Bitcoin Price (BTC) Weekly Target of $7.5K Still In Sight
- Bitcoin price extended its decline and broke the key $8,000 support area against the US Dollar.
- The price is likely to test the main weekly bearish target of $7,500 in the coming sessions.
- There was a bearish break below a contracting triangle with support near $8,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is currently trading near $8,000 and it is likely to extend its decline towards $7,500.
Bitcoin price is extending its decline below $8,000 against the US Dollar. BTC could soon test the bearish target of $7,500 as discussed in one of the recent analyses.
Bitcoin Price Analysis
After a short term correction, bitcoin struggled to break the $8,750 resistance area against the US Dollar. As a result, the price started consolidating losses below $8,500 and the 100 hourly simple moving average. Finally, there was a downside break below the $8,350 and $8,200 support levels. It seems like the bulls failed to protect losses below the $8,200 support level.
Moreover, there was a bearish break below a contracting triangle with support near $8,350 on the hourly chart of the BTC/USD pair. The pair even broke the key $8,000 support and traded to a new monthly low at $7,736. Recently, there was an upside correction above the $7,850 level. The price traded above the 23.6% Fib retracement level of the recent decline from the $8,646 high to $7,736 low.
However, the upward move is facing resistance near the $8,200 level (the previous support). Additionally, the 50% Fib retracement level of the recent decline from the $8,646 high to $7,736 low is capping upsides. There is also a connecting bearish trend line forming with resistance near $8,040 on the same chart. Therefore, an upside break above $8,050 and $8,200 is needed for a decent recovery.
If the price fails to correct above $8,200, it could continue to move down. An immediate support is near the $7,800 level. Any further losses is likely to open the doors for a sharp decline towards the $7,500 support area in the near term. If the bulls fail to protect $7,500, the price could tumble towards the $7,000 support.
Looking at the chart, bitcoin is clearly under pressure below $8,200 and $8,350. Therefore, there are high possibilities of more downsides towards $7,500 or even $7,200. Once the current decline is over, the price might correct above $8,500 in the coming days.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
Major Support Levels – $7,800 followed by $7,500.
Major Resistance Levels – $8,200, $8,350 and $8,500.
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Aayush Jindal, Khareem Sudlow