Bitcoin price is currently correcting lower against the US Dollar. BTC/USD might bounce back from $7,600 if buyers defend the 100 hourly SMA.
Bitcoin Price AnalysisAfter a decent upside move, bitcoin price faced a lot of offers near the $7,750 level against the US Dollar. The BTC/USD pair formed a short-term top near $7,748 and started a downside correction. It declined and moved below the 23.6% Fibonacci retracement level of the last wave from the $7,350 low to $7,748 high. There seems to be a minor increase in selling pressure below the $7,700 level.
More importantly, there was a break below a major connecting bullish trend line with support at $7,640 on the hourly chart of the BTC/USD pair. The pair is currently trading above the $7,600 support and the 100 hourly simple moving average. Moreover, the 38.2% Fibonacci retracement level of the last wave from the $7,350 low to $7,748 high is also around the $7,600 support. Should there be a bearish break below the $7,600 support, the price could extend declines towards the $7,500 level.
Looking at the chart, the price is facing a bearish trend line on the upside with resistance at $7,680. A successful break and close above the trend line and $7,700 may perhaps clear the path for more gains in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving lower and is currently moving well below the 50 level.
Major Support Level – $7,600
Major Resistance Level – $7,700
