Bitcoin Turned ‘Sell’ After A Key Technical Rejection Above $7K

Bitcoin was rejected above the $7,000 level and it declined heavily against the US Dollar. BTC price is currently trading in a bearish zone and it could continue to slide towards $6,400.

• Bitcoin is showing a lot of bearish signs below the $7,000 pivot level against the US Dollar.
• There was a key technical rejection near the $7,200 area and the 100 hourly SMA.
• There is a crucial bearish trend line forming with resistance near $7,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to continue lower as long as it is below the $7,200 level.

Bitcoin Turns Red

After forming a support base above the $6,700 level, bitcoin price started a fresh increase against the US Dollar. BTC price climbed above the $6,900 and $7,000 levels, but it failed to gain bullish momentum.

It seems like the price was rejected above the $7,000 level and the 100 hourly simple moving average. More importantly, there is a crucial bearish trend line forming with resistance near $7,150 on the hourly chart of the BTC/USD pair.

Bitcoin Price

The pair formed a high near the $7,218 and declined heavily. It trimmed all its gains and even broke the $6,700 support area. A new weekly low is formed near the $6,559 level and the price is currently correcting higher.

It is trading near the 23.6% Fib retracement level of the recent decline from the $7,218 high to $6,559 low. An immediate resistance on the upside is near the $6,750 level (the recent breakdown zone).

If there are more gains above $6,750, bitcoin price might correct higher towards the $6,880 and $6,900 levels. The 50% Fib retracement level of the recent decline from the $7,218 high to $6,559 low is also near the $6,888 level to act as a resistance.

The main hurdle is now near the $7,150 and $7,200 levels, above which the price is likely to gain bullish momentum in the near term.

More Downsides?

If bitcoin fails to recover above $6,750 or $6,900, there are chances of more downsides. An initial support is near the $6,600 level, below which the price might even decline below $6,500.

The next key support is near the $6,400 level, followed by $6,200 where the bulls are likely to take a stand.

Technical indicators:

Hourly MACD – The MACD is currently showing a lot of bearish signs.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Levels – $6,500 followed by $6,200.

Major Resistance Levels – $6,880, $7,000 and $7,150.