Bitcoin (BTC) Flirts With Key Resistance, Bears In Control
- Bitcoin price is showing a lot of bearish signs below the $7,280 resistance against the US Dollar.
- The price is likely to face resistance and selling interest near the $7,280 and $7,400 levels.
- There is a short term rising channel forming with resistance near $7,290 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher towards $7,280, where the bears are likely to take a stand.
Bitcoin price is trading in a bearish zone below $7,400 against the US Dollar. BTC could continue to move down unless there is a break above $7,280 and $7,400.
Bitcoin Price Analysis
In the past few days, there was a steady decline in bitcoin price below the $7,400 support against the US Dollar. Moreover, BTC price settled below the $7.280 support and the 100 hourly simple moving average.
Finally, the price traded below the $7,200 support and formed a new monthly low at $7,078. Recently, it started an upside correction above the $7,120 and $7,150 levels.
Besides, there was a break above the 23.6% Fib retracement level of the downward move from the $7,664 high to $7,078 low. However, the price seems to be facing a lot of hurdles near the $7,260 and $7,280 levels.
An immediate resistance for bitcoin is near the $7,280 level (the recent breakdown support). Additionally, the 100 hourly simple moving average is also near the $7,280 level.
More importantly, there is a short term rising channel forming with resistance near $7,290 on the hourly chart of the BTC/USD pair. If there is an upside break above the $7,280 resistance and the 100 hourly SMA, the price could correct higher towards the $7,400 barrier.
An intermediate resistance is near the 50% Fib retracement level of the downward move from the $7,664 high to $7,078 low. A successful close above the $7,400 resistance is needed to start a fresh uptrend towards $8,000.
On the downside, an initial support is near the channel support at $7,180. If there is a downside break below the $7,180 area, the price is likely to revisit the $7,080 level in the near term.
Looking at the chart, bitcoin price is slowly recovering above $7,150 and $7,200. Having said that, the bulls are facing a lot of hurdles near the $7,280 level. The main hurdle is still near the $7,400 pivot level.