Bitcoin Struggles to Uptrend as Bears Dominate
Bitcoin saw a downward correction from the $ 7700 resistance area against the USD on the 24th of December. The cryptocurrency traded below $ 7400 and $ 7300 support levels. Further, it is striving to stay above the $7260 support and the 100 SMA.
More losses occurred, and the price traded close to $ 7160 support. A low got formed close to $ 7160, and the Bitcoin price is currently consolidating losses. A short-term contracting triangle with resistance near $7250 on the BTC hourly chart got formed.
Additionally, the 23.6% Fib retracement level of the fresh drop from the $7700 high to $7160 low is nearly at $7280. The 100 hourly SMA is also positioned close to the $7300 level.
In this case, a successful break above $ 7240 and $ 7300 might start a decent move to the upside. The next significant resistance is near the $7400 level or the 50 % fib retracement level of the new decline from the $ 7700 high to $ 7160 low.
Bitcoin Bearish Trend Line Forms
There is also the formation of a key connecting bearish trend line, with resistance near $7480 on the same chart. Therefore, Bitcoin’s price must settle above $7400 and $7500 before establishing any upward move.
The level at $7700 is the next resistance, above which the price may test the $8000 resistance. The price could also decline below the $7160 and $7120 support levels on the downside. There is, however, a sharp decline below the $ 7160 support level if the bears gain control below $7120. Consequently, the price might fall to $ 6000 once more.
Analyzing the BTC/USD Price Chart
The BTC/USD price chart reveals some bearish signals below $7300 and $7400. Nevertheless, there are still chances of recovering as long as there is no daily close below the $7120 support. Technical indicators suggest that the hourly MACD is slowly moving into the bullish zone.
The hourly Relative Strength Index is dropping as it moves towards the level at 40. The significant support levels are $7160 and $7120, whereas the major resistance levels are $7300, $7400, and $7500.