Bitcoin Downside Thrust Possible Before Key Reversal @newsbtc #Analysis #Technical #bitcoin #btc

• Bitcoin price spiked towards $7,400, but it failed to retain strength against the US Dollar.
• The bulls need to protect the $7,120 and $7,000 support levels in the near term.
• There is a major bear...
  • Bitcoin price spiked towards $7,400, but it failed to retain strength against the US Dollar.
  • The bulls need to protect the $7,120 and $7,000 support levels in the near term.
  • There is a major bearish trend line active with resistance near $7,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could spike towards the $7,000 support area before it attempts a strong increase.

  Bitcoin price is holding the key $7,120 and $7,000 support levels against the US Dollar. BTC is facing many hurdles on the upside near $7,300 and $7,400.

  Bitcoin Price Analysis

  After forming a support base near the $7,120, bitcoin price climbed higher recently against the US Dollar. The price rallied above the $7,250 and $7,300 resistance levels.

  Moreover, there was a spike above the $7,400 level and the 100 hourly simple moving average. However, the price struggled to remain steady above the $7,400 level and formed a swing high near $7,431.

  As a result, the price trimmed most gains and declined below $7,300. Besides, it is now trading well below the $7,250 level and the 100 hourly SMA. A low is formed near $7,150 and the price is currently consolidating losses.

  An initial resistance is near the 23.6% Fib retracement level of the recent drop from the $7,431 high to $7,150 low. The first key resistance is near the $7,300 level.

  Additionally, the 50% Fib retracement level of the recent drop from the $7,431 high to $7,150 low is near the $7,300 level. More importantly, there is a major bearish trend line active with resistance near $7,360 on the hourly chart of the BTC/USD pair.

  If there is an upside break above the $7,300 level, the 100 hourly SMA, and the bearish trend line, then bitcoin price could attempt to rally above the $7,400 resistance area.

  Conversely, the price might continue to struggle near $7,300 and $7,400. On the downside, the $7,120 level is a key support zone. If there is a downside break below $7,120, the price could struggle to hold the $7,000 support.

  

  Bitcoin Price

  Looking at the chart, bitcoin price clearly trimmed most gains and back to the $7,120 support area. It seems like the price might spike to the downside to test the $7,000 support area before it starts a strong rise above the $7,300 and $7,400 resistance levels.

  Technical indicators:

  Hourly MACD – The MACD is slowly moving in the bearish zone.

  Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level, with a minor bearish angle.

  Major Support Levels – $7,120 followed by $7,000.

  Major Resistance Levels – $7,300, $7,360 and $7,400.

  The post Bitcoin Downside Thrust Possible Before Key Reversal appeared first on NewsBTC.

  
  
  source https://www.tokentalk.co/NewsBTC/bitcoin-downside-thrust-possible-before-key-reversal-5e059c01aaaa82816ee434e4