Bitcoin (BTC) Breakdown Below $7K Looms, Can Bulls Bounce Back?
- Bitcoin price is trading in a bearish zone below the $7,200 resistance against the US Dollar.
- The price is currently struggling to stay above the $7,000 support area.
- There is a connecting bearish trend line forming with resistance near $7,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to face a lot of hurdles near $7,120, $7,160 and $7,200.
Bitcoin price is struggling to recover above $7,200 against the US Dollar. Therefore, BTC remains at a risk of a larger breakdown below the $7,000 support.
Bitcoin Price Analysis
Recently, bitcoin extended its decline below the $7,080 support area against the US Dollar. Moreover, BTC price settled below $7,200 and the 100 hourly simple moving average.
Finally, it tested the $7,000 support and formed a new monthly low at $7,008. It is currently consolidating losses above the $7,000 and $7,020 levels. The recent low is $7,032 and an initial resistance is near the $7,080 level.
Besides, the 23.6% Fib retracement level of the downward move from the $7,204 high to $7,008 low is also near the $7,072 level. The first key resistance for bitcoin price is near the $7,120 level.
Additionally, there is a connecting bearish trend line forming with resistance near $7,120 on the hourly chart of the BTC/USD pair. The 50% Fib retracement level of the downward move from the $7,204 high to $7,008 low is also near the $7,118 level.
Thus, a clear break above the trend line and $7,120 is needed for a decent recovery. The next hurdles are seen near the $7,160 and $7,180 levels. More importantly, an upside break and close above $7,200 is must to start a substantial recovery.
On the downside, an initial support is near the $7,030 level. The main support is near the $7,000 level. If there is a successful break and close below $7,000, the bears are likely to gain strength.
In the mentioned case, the price is likely to accelerate below $7,000 and $6,900. An immediate support is near $6,800, below which the gates could open for a test of the $6,500 support area.
Looking at the chart, bitcoin price is clearly trading in a downtrend below $7,160 and $7,200. As long as there is no daily close above $7,200, there are high chances of another breakdown below the $7,000 support area.