Bitcoin (BTC) Turns Short Term Bearish But Holding Key Support
Yesterday, we discussed the chances of an upside extension in bitcoin price above $7,500 against the US Dollar. BTC price did climb higher above the $7,500 resistance and the 100 hourly simple moving average.
Moreover, there was a spike above the $7,600 level, but the price failed to test the $7,700 resistance area. A new weekly high is formed near $7,664 and the price declined recently.
It traded below the $7,500 pivot level and the 100 hourly simple moving average. Besides, there was a break below the $7,420 and $7,400 support levels. More importantly, bitcoin price traded below a connecting bullish trend line with support near $7,460 on the hourly chart of the BTC/USD pair.
Finally, the price spiked below $7,300 and traded as low as $7,257. It is currently correcting higher above the 23.6% Fib retracement level of the recent decline from the $7,664 high to $7,257 low.
On the upside, there are a few important resistances near $7,400 and $7,420 (the previous support levels). The next key resistance is near the $7,460 level and the 100 hourly SMA.
Additionally, the 50% Fib retracement level of the recent decline from the $7,664 high to $7,257 low is near the $7,460 level to act as a resistance. There is also a key bearish trend line forming with resistance near $7,525 on the same chart.
Therefore, an upward move towards the $7,460 and $7,500 levels may perhaps face a strong resistance. If there is an upside break above $7,500, the price could revisit $7,460 or $7,700.
Looking at the chart, bitcoin price is back in a short-term bearish zone below $7,420. If it recovers and settles above $7,420, it may perhaps attempt to surpass $7,500. On the downside, the $7,280 and $7,250 levels hold the key in the near term.