After bitcoin has made a recovery above the $7,500 resistance, it couldn’t gain strength above $7,800 levels and started to decline. The number one crypto broke the $7,600 and $7,500 support levels and resumed a new bearish trend.
The coin is currently trading below the $7,400 support and the 100 hourly simple moving average. Its immediate support is near the $7,200. From the look of things, bitcoin is about to trade below the 61.8% Fib retracement level of the upward wave from the $6,850 swing low to $7,800 high. Going back to the $7,000 support area is very likely, especially if there is a downside break below the $7,200 support area.
The bears are now gaining momentum and if the $7,000 support is broken, there is a risk of a sharp fall. And it is very likely we would go back to the $6,500 support area in the short-term.
There is a key resistance forming near the $7,400 level on the upside. In addition, the hourly chart of the BTC/USD pair indicates a major bearish trend line forming with resistance near $7,390.
Consequently, a clear break above the $7,400 resistance is important for a fresh increase to happen. Besides, the next immediate resistance is near the $7,500 level and the 100 hourly simple moving average.
From the bitcoin chart, you could realize the price is under much pressure below the $7,400 level. It seems like this could continue to move down towards $7,000 or even to $6,800.
There are some other technical indicators which also support analysis. The hourly MACD is gaining pace in the bearish region. The hourly RSI for BTC/USD is also currently declining towards the 30 level.
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