Bitcoin price declined heavily below $7,000 against the US Dollar. If BTC/USD corrects higher, it may perhaps find a lot of hurdles on the upside.
Bitcoin Price AnalysisThe past few hours were very bearish as bitcoin price declined by more than $500 against the US Dollar. The BTC/USD pair started a sharp downside move and fell below key supports at $7,500, $7,200 and $7,000. It even declined below the $6,800 and traded towards the $6,600 level where buyers emerged. A low was formed near the $6,628 and the price is currently correcting higher.
On the upside, an initial resistance is around the 38.2% Fibonacci retracement level of the last decline from the $7,350 high to $6,628 low. On the upside, there is also a major bearish trend line formed with resistance at $6,950 on the hourly chart of the BTC/USD pair. The same trend line is close to the 50% Fibonacci retracement level of the last decline from the $7,350 high to $6,628 low. Therefore, if the price corrects higher, it could face sellers near the $6,900 and $7,000 levels.
Looking at the chart, the current price action is very bearish below $7,000. As long as the price is below the stated level, it remains at a risk of a downside break below the $6,600 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is currently reducing its bearish slope with a few positive signs.
Hourly RSI (Relative Strength Index) – The RSI is moving high and is currently recovering from the oversold levels.
Major Support Level – $6,600
Major Resistance Level – $7,000
