Bitcoin Continues Its Downtrend, Sub-$7000 Levels Is Possible
Yesterday, after bitcoin has tested the $7,600 support area, it corrected a few points against the USD. It settled above the $7,800 level, and stayed well below the 100 hourly simple moving average (SMA).
However, there wasn’t enough momentum to climb above the $8,000 level. A daily high was formed near $7,988 and the price is currently making a downward correction. The $7,800 support level was broken to start a fresh decline.
Additionally, the price broke the 61.8% Fib retracement level of the recent uptrend from the $7,578 low to $7,988 high. This paved way for more losses below $7,700, and bitcoin is now trading near the $7,500 level.
A major declining channel, with support near $7,550, seems to be forming on the BTC/USD hourly chart. On the downside, a few key supports are seen near the $7,500 and $7,400 levels. If the price fails to stay above the $7,400 support, there is a risk of a sharp downward move towards the $7,000 level.
If the bulls get a solid buying interest near $7,500 or $7,400, it may perhaps lead to a fresh recovery in the coming sessions. On the upside, an initial resistance is seen near the $7,800 level. The price must surpass the $8,000 resistance area, before it can begin any decent uptrend. In the above scenario, there are chances of a decent uptrend towards the $8,400 and $8,500 levels. The overall price action of bitcoin is bearish.
The hourly MACD for the BTC/USD pair is now gaining pace in the bearish zone. The hourly RSI (Relative Strength Index) for the pair is currently dropping towards the 25 level. Major support levels are at $7,500 and $7,400, whereas major resistance levels are also at $7,800 $8000 and $8,200.
Featured image courtesy of Shutterstock. Source: Cryptopress.