Bitcoin (BTC) Breakdown Below $7K Likely, $6.5K Could Be Next
Yesterday, we saw an increase in selling on bitcoin below the $7,300 support against the US Dollar. BTC price declined further and broke a few key supports near $7,280 and $7,200.
Moreover, there was a close below the $7,200 support and the 100 hourly simple moving average. Finally, the price spiked below the $7,100 level and tested the $7,080 support.
A low was formed near $7,078 and the price is currently correcting higher. It is trading above the $7,150 level. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $7,297 high to $7,078 low.
An immediate resistance is near the $7,165 level (the recent breakdown support). The first key resistance is near the $7,200 level. Additionally, the 50% Fib retracement level of the recent decline from the $7,297 high to $7,078 low is near $7,190.
More importantly, there is a key bearish trend line forming with resistance near $7,190 on the hourly chart of the BTC/USD pair. Therefore, bitcoin price is likely to struggle near the $7,190 and $7,200 levels.
If there is an upside break above the $7,200 resistance, the price could recover towards the $7,280 resistance. The next major resistance is near $7,340, the 100 hourly SMA, and $7,400.
On the downside, an initial support is near the $7,100 and $7,080 levels. If there is a downside break below the $7,080 area, the bears are likely to aim a clear break below the $7,000 support area in the near term.
Looking at the chart, bitcoin price is under a lot of pressure below the $7,200 area. Thus, there are high chances of another breakdown below the $7,000 support. The main target for the bears could be $6,600 or $6,500.
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently flat near the 40 level.
Major Support Levels – $7,080 followed by $7,000.
Major Resistance Levels – $7,200, $7,280 and $7,340.