Bitcoin Weekly Forecast: BTC Trend Overwhelmingly Bearish
This past week, bitcoin struggled to recover above the $7,280 and $7,300 resistance levels against the US Dollar. Moreover, BTC price remained well below the $7,400 level and the 100 simple moving average (4-hours).
The recent decline was such that the price declined below the $7,100 support area. A new monthly low is formed near $7,008 and the price is currently consolidating losses.
An initial resistance is near the $7,100 level. Additionally, the first hurdle is near the $7,165 level or the 23.6% Fib retracement level of the downward move from the $7,668 high to $7,008 low.
The next major resistance is near the $7,280 level. Besides, there is a key bearish trend line forming with resistance near $7,260 on the 4-hours chart of the BTC/USD pair. Above the trend line, the 100 simple moving average (4-hours) is near the $7,340 area.
More importantly, the 50% Fib retracement level of the downward move from the $7,668 high to $7,008 low is near the $7,338 level. Therefore, the $7,280 and $7,340 levels are important hurdles for a decent recovery in the near term.
A clear break above the $7,340 level is likely to open the doors for more upsides above the $7,400 level. On the downside, an immediate support is near the $7,000 level.
If there is a downside break below the $7,000 support, there is a risk of a sharp decline below the $6,880 support. The next major support is near the $6,600 and $6,500 levels, where buyers are likely to appear.
Looking at the chart, bitcoin price is clearly trading below a couple of important resistances near the $7,280 level. The next move could be either a sharp decline below $7,000 or a decent recovery above the $7,280 resistance area.