Bitcoin (BTC) Trend Overwhelmingly Negative, Continue Selling?
Recently, bitcoin made a couple of attempts to settle above $7,380 and $7,400 against the US Dollar. However, BTC failed to gain bullish momentum above $7,400 and remained well below the 100 hourly simple moving average.
As a result, the bears took over and the price declined below the $7,320 support. Moreover, there was a break below the key $7,200 and $7,180 support levels.
Finally, the price traded to a new weekly low at $7,108 and it is currently consolidating losses. An immediate resistance is near $7,180, and the 23.6% Fib retracement level of the recent decline from the $7,365 high to $7,108 low.
The main resistance on the upside is near the $7,240 level (the recent breakdown level). Besides, it is close to the 50% Fib retracement level of the recent decline from the $7,365 high to $7,108 low.
More importantly, yesterday’s key declining channel is still active with resistance near $7,320 on the hourly chart of the BTC/USD pair. Above the channel resistance, the main resistance is near the $7,400 level and the 100 hourly simple moving average.
Therefore, a daily close above the $7,400 barrier and the 100 hourly simple moving average is needed for a trend change. If not, bitcoin price is likely to decline further below $7,100.
The next key support area is near the $7,000 level. If the bulls fail to defend the $7,000 support area, the price could start a nasty decline towards the last swing low near the $6,500 support area.
Looking at the chart, bitcoin price is clearly following a downtrend below the $7,240 and $7,320 levels. Thus, there is a risk of an extended decline below $7,100. In the mentioned case, it would be interesting to see whether the bears are able to push the price below $7,000 in the first attempt.