Bitcoin May Fall Below $7000 as Decline Extends
On the 11th of March 2020, Bitcoin tested the $7600 support area and corrected a few points against the USD. The virtual currency is at the $7800 level and stayed under the 100 hourly simple moving average (SMA).
Nevertheless, the momentum to climb above the $8000 level was not enough. A daily high formed near $7988 and the price is currently making a downward correction. The $7800 support level broke to start a fresh decline. Bitcoin’s price broke the 61.8% Fib retracement level of the recent uptrend from the $7578 low to $7988 high. It paved the way for more losses under the $7700, and currently, Bitcoin is trading near the $7500 level.
Analyzing the Bitcoin Hourly Chart
On the BTC/USD hourly chart, there is the formation of a significant declining channel with support near $7550, and on the downside, there are few key supports near the $7500 and $7400 levels. If the price goes below the $7400 support, a sharp downward move to the $7000 level will occur. On the other hand, if the bulls get a solid buying interest near $7500 or $7400, a fresh recovery may occur.
A look at the upside reveals an initial resistance near the $7800 level. Nevertheless, the price must surpass the $8000 resistance area for it to initiate a decent upsurge. In this case, there are chances of a decent uptrend towards the $8400 and $8500 levels, and the overall price action of bitcoin is bearish.
The technical indicators, that is, 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 levels. The significant support levels are $7500 and $7400, while the significant major resistance levels are at $7800, $8000, and $8200.