Bears Are Taking Over as Bitcoin Struggling To Continue Higher
Furthermore, it struggled to stay above the $7,260 support and the 100 hourly simple moving average. This led to more losses and the price traded close to the $7,160 support.
A low is formed close to $7,160 and the BTC price is currently consolidating losses. There seems to be a formation of a short-term contracting triangle, with resistance near $7,250 on the BTC hourly chart.
Besides, the 23.6% Fib retracement level of the recent decline from the $7,700 high to $7,160 low, is near the $7,280 level. Notably, the 100 hourly simple moving average is positioned close to the $7,300 level.
Consequently, a successful break above $7,240 and $7,300 might start a decent upside move. The next major resistance is near the $7,400 level or the 50% Fib retracement level of the recent drop from the $7,700 high to $7,160 low.
Moreover, there is a formation of a key connecting bearish trend line, with resistance near $7,480 on the same chart. The BTC price must settle above $7,400 and $7,500 before any strong upward move could be established.
The next key resistance is close to the $7,700 level, above which the price is likely to test the $8,000 resistance. On the downside, the price could decline further below the $7,160 and $7,120 support levels.
Should the bears gain control below $7,120, there are high chances of a sharp drop below the $7,000 support area. In the above scenario, the price is likely to drop to the $6,600 regionagain.
A close look at the BTC price chart shows a few bearish signals below $7,300 and $7,400. However, there are still chances of recovering as long as there is no daily close below the $7,120 support.
Technical indicators suggest that, the hourly MACD is slowly moving into the bullish zone. The hourly Relative Strength Index is declining and moving towards the 40 level. The major support levels are $7,160 and $7,120, whereas the major resistance levels are $7,300, $7,400 and $7,500.
Featured image courtesy of Shutterstock. Source: Cryptopress.