Bitcoin Downside Thrust Possible Before Key Reversal


Bitcoin price spiked towards $7,400, but it did not retain strength against the US Dollar. 

The bulls got to protect the $7,120 and $7,000 support levels within the near term. 

There is a major bearish trend line active with resistance near $7,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).

 The pair could spike towards the $7,000 support area before it attempts a robust increase. 

Bitcoin price is holding the key $7,120 and $7,000 support levels against the US Dollar. BTC is facing many hurdles on the upside near $7,300 and $7,400.

Bitcoin Price Analysis 

After forming a support base near the $7,120, bitcoin price climbed higher recently against the US Dollar. The price rallied above the $7,250 and $7,300 resistance levels. 

Moreover, there was a spike above the $7,400 level and the 100 hourly simple moving average. However, the worth struggled to stay steady above the $7,400 level and formed a swing high near $7,431.

 As a result, the worth trimmed most gains and declined below $7,300. Besides, it's now trading well below the $7,250 level and therefore the 100 hourly SMA. A low is formed near $7,150 and the price is currently consolidating losses.

 An initial resistance is near the 23.6% Fib retracement level of the recent drop from the $7,431 high to $7,150 low. The first key resistance is near the $7,300 level.

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Additionally, the 50% Fib retracement level of the recent drop from the $7,431 high to $7,150 low is near the $7,300 level. More importantly, there is a major bearish trend line active with resistance near $7,360 on the hourly chart of the BTC/USD pair.

If there is an upside break above the $7,300 level, the 100 hourly SMA, and the bearish trend line, then bitcoin price could attempt to rally above the $7,400 resistance area.

Conversely, the price might continue to struggle near $7,300 and $7,400. On the downside, the $7,120 level is a key support zone. If there is a downside break below $7,120, the price could struggle to hold the $7,000 support.

Hourly MACD – The MACD is slowly occupation the bearish zone.

 Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level, with a minor bearish angle.

 Major Support Levels – $7,120 followed by $7,000. Major Resistance Levels – $7,300, $7,360 and $7,400.

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