Bitcoin (BTC) Price Bearish Breakdown Looks Real, $7,500 Next?
- Bitcoin price is back in a downtrend with a close below the $8,000 support against the US Dollar.
- The price is trading below the $8,000 support and remains at a risk of more losses below $7,800.
- Yesterday’s highlighted major declining channel was breached with support near $8,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could correct in the short term, but the $8,020 and $8,100 resistances are likely to prevent gains.
Bitcoin price is declining and trading below key supports against the US Dollar. BTC is likely to extend its decline below the $7,800 support area in the near term.
Bitcoin Price Analysis
Yesterday, we saw bearish signs for bitcoin below the $8,250 support area against the US Dollar. BTC price gained bearish momentum and broke a couple of important supports near the $8,100 level and the 100 hourly simple moving average. Moreover, the price broke a crucial support area near the $8,020 and $8,000 levels to move into a bearish zone and start another decline.
Additionally, yesterday’s highlighted major declining channel was breached with support near $8,100 on the hourly chart of the BTC/USD pair. The pair traded below $7,950 and formed a new weekly low near $7,915. It is currently consolidating gains below the $8,000 resistance area. An immediate resistance is near the $8,000 and $8,020 levels. Moreover, the 23.6% Fib retracement level of the recent drop from the $8,385 high to $7,915 low is also near the $8,020 resistance.
If there is an upside correction above $8,020, bitcoin could recover towards the $8,100 resistance area (the previous support). Above $8,100, the next major resistance is near the $8,150 level. It represents the 50% Fib retracement level of the recent drop from the $8,385 high to $7,915 low. However, the price must move above the $8,250 resistance and the 100 hourly SMA to start a decent upward move.
On the downside, an initial support is near the $7,915 low. Besides, the first key support is near the $7,800 level. If there is a downside break below the $7,800 support, the price could extend its decline towards the key $7,600 and $7,500 support levels.
Looking at the chart, bitcoin is now trading in a downtrend and the recent breakdown below $8,000 is likely to gain momentum. Therefore, it seems like the price might head towards the $7,800 and $7,500 support levels in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is about to move back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining and is well below the 40 level.
Major Support Levels – $7,800 followed by $7,500.
Major Resistance Levels – $8,020, $8,100 and $8,150.
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Aayush Jindal, Khareem Sudlow
