Bitcoin Price (BTC) Extending Decline Below Key Support
- Bitcoin price is currently declining and is trading well below $8,000 against the US Dollar.
- The price is struggling to recover and it looks set to decline further towards the $7,500 support.
- There is a crucial declining channel forming with resistance near the $8,050 level on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to accelerate decline below the $7,800 and $7,750 levels in the near term.
Bitcoin price is showing bearish signs below $8,000 against the US Dollar. BTC remains at a risk of an extended decline towards the $7,500 weekly target.
Bitcoin Price Analysis
In the past few days, there was a steady decline in bitcoin from the $8,500 resistance against the US Dollar. The BTC/USD pair broke many supports near $8,300 and $8,200 to enter a bearish zone. Moreover, there was a close below the $8,200 level and the 100 hourly simple moving average. Recently, the bears gained traction and they were successful in pushing the price below the $8,000 support area.
A new weekly low was formed near $7,770 and the price is currently consolidating losses. An immediate resistance is near the $7,850 level. It coincides with the 23.6% Fib retracement level of the recent decline from the $8,213 high to $7,770 low. On the upside, there are many important hurdles forming for bitcoin near the $8,000 and $8,050 levels. Besides, there is a crucial declining channel forming with resistance near the $8,050 level on the hourly chart of the BTC/USD pair.
An intermediate resistance is near the $7,990 level. It represents the 50% Fib retracement level of the recent decline from the $8,213 high to $7,770 low. Additionally, the channel resistance at $8,050 coincides with the 100 hourly simple moving average. Therefore, if there is an upside correction towards the $8,000 and $8,050 levels, the price could face strong selling interest.
On the downside, an immediate support is near the $7,770 low. If there is a downside break below $7,770 and $7,750, the price could accelerate losses. Besides. the main target for the bears could be $7,500 (as discussed in the past few analyses).
Looking at the chart, bitcoin is currently trading in a downtrend below the $8,000 level and the 100 hourly SMA. Therefore, it seems like the price could extend its decline below the $7,750 and $7,650 levels. On the upside, the bulls are likely to face sellers near $8,000 or $8,050.
Technical indicators:
Hourly MACD – The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.
Major Support Levels – $7,750 followed by $7,500.
Major Resistance Levels – $7,990, $8,000 and $8,050.
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Aayush Jindal, Khareem Sudlow