Tag Archives: bitcoin bulls

Bitcoin BTC Price Downside Thrust Underway Bulls Struggling

Bitcoin (BTC) Price Downside Thrust Underway, Bulls Struggling

  • Bitcoin price failed to stay above the $7,400 support and declined recently against the US Dollar.

  • The price is trading below $7,280 and it could even decline below the $7,160 support.

  • There is a major declining channel forming with resistance near $7,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair remains at a risk of a downside thrust below $7,160 and $7,040 in the near term.

Bitcoin price is showing a few bearish signs below $7,280 against the US Dollar. BTC is likely to continue lower below $7,160 unless it climbs above $7,400.

Bitcoin Price Analysis

Yesterday, we saw a downside break in bitcoin price below the $7,400 support against the US Dollar. BTC price broke many supports near $7,320 and settled below the 100 hourly simple moving average.

Moreover, the bears were able to push the price below the $7,280 support area. Finally, the price traded below the $7,200 support and tested the $7,160 support zone.

A low was formed near $7,159 and the price is currently correcting higher. An immediate resistance is near the $7,240 and $7,250 levels. Besides, there is a major declining channel forming with resistance near $7,240 on the hourly chart of the BTC/USD pair.

Above the channel resistance, the $7,280 level is a key resistance. Additionally, the 23.6% Fib retracement level of the recent drop from the $7,664 high to $7,159 low.

If bitcoin manages to recover above $7,240 and $7,280, the price could climb towards the next major resistance near the $7,400 area. More importantly, the 50% Fib retracement level of the recent drop from the $7,664 high to $7,159 low is also near the $7,410 level to stop the bulls.

If the bulls succeed in clearing the $7,400 resistance area, the price could surge towards $7,660 or $7,700. On the other hand, the price may perhaps continue to move down below $7,200.

An immediate support is near $7,160, below which the price is likely to accelerate towards $7,040 or $7,000 in the near term. Any further losses might call for a test of the $6,600 area.

 

Bitcoin Price

Looking at the chart, bitcoin price is facing an increase in selling below $7,400 and $7,280. As long as it is trading below $7,400, there remains a risk of another drop below $7,000.

Technical indicators:

Hourly MACD – The MACD is showing negative signs in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.

Major Support Levels – $7,160 followed by $7,040.

Major Resistance Levels – $7,280, $7,400 and $7,420.

 

 

Aayush Jindal

Make or Break Time For Bitcoin How Likely is Another Final Capitulation?

Make or Break Time For Bitcoin, How Likely is Another Final Capitulation?

Following a little momentum last week Bitcoin spent most of the weekend consolidating. It has been pretty flat for the past fortnight and analysts are now considering the unpopular premise of a final capitulation approaching which would mirror movements from this time last year.

Bitcoin Bulls and Bears Poised

Crypto markets were lifted on Friday which resulted in BTC topping out over $7,600 briefly on Saturday. A Sunday dip to $7,400 was quickly recovered and the best part of the past two days has been spent at $7,500.

BTC price 1 hour chart – Tradingview.com

Since the big dump on November 25, Bitcoin has remained at this level with very little momentum to take it higher. There have been two green weekly closes but nowhere near enough to cancel out last month’s massive red candles.

Sentiment is generally mixed at the moment with a number of analysts eyeing the possibility of another final capitulation as charts are beginning to mirror patterns this time last year when BTC dumped into the $3k zone.

Trader and analyst Jacob Canfield polled some of his followers to gauge sentiment of the two opposing groups of Bitcoin bulls and bears.

Unsurprisingly things were very close from the 1,500 or so respondents at the time of writing with just over half of them bullish. Another sentiment measure is the BTC fear and greed index and that is still registering a fearful 28 at the moment.

Any move south from here is likely to retest the $6,500 level first. A final capitulation however could see prices plunge to $5k which is where the 200 week moving average lies and the first level of resistance on the upside of the rally in April.
 

When Halving Pump?

Eventually though, halving FOMO will start to kick in as mathematical scarcity notion takes a grip. There is usually a little momentum in the lead up to the event but we still have around six months to go. A final shake out could be the last good buying opportunity before a bull market after the halving in 2020.

Replying to a chart comparison, trader and analyst Josh Rager noted that this still feels like the accumulation phase that occurred last year.

It is also highly likely that this consolidation could continue until after the New Year as traders take a break over the festive period.

Either way, if history rhymes there will be a big upside push for the halving as there has been for the past two. Economic principles like stock to flow models are hard to ignore, especially when the banks of the world are trying their hardest to devalue traditional currencies.

Whatever happens in the short term for Bitcoin should not deter investors but it may irk the day traders who are largely responsible for all of this volatility in the first place!

 

Martin Young

Secret Bitcoin Indicator Signals Major BTC Bull Run Incoming Says Crypto Hedge Fund Insider

Secret Bitcoin Indicator Signals Major BTC Bull Run Incoming, Says Crypto Hedge Fund Insider

An analyst at the crypto hedge fund Adaptive Capital is releasing a mysterious chart that he says indicates a major Bitcoin bull run is about to begin.

According to Willy Woo, who invented the Network Value to Transactions Ratio (NVT) to measure the dollar value of crypto transactions relative to network value, Bitcoin’s on-chain volume suggests the bottom is in and a long-term rally is about to begin.

“On-chain momentum is crossing into bullish. Prep for halvening front running here on in. Can’t say what this indicator is, as it’s proprietary to @AdaptiveFund , but it tracks investor momentum.

The bottom is mostly likely in, anything lower will be just a wick in the macro view.”

The debate on the potential impact of Bitcoin’s upcoming halving (aka halvening) is hitting a fever pitch as 2019 comes to a close.

The halving is set to happen in May of next year, slashing the reward miners receive for each new block of Bitcoin, reducing it from 12.5 BTC to 6.25 BTC.

The event happens every four years on average, slowing the amount of new BTC entering the market as the leading cryptocurrency slowly approaches its hard cap of 21 million coins.

Analysts like PlanB say BTC’s price history shows halvings have been strongly correlated with previous Bitcoin rallies.

But other analysts, such as Morgan Creek Digital’s Jason A. Williams, say BTC’s next halving is so highly anticipated that it may already be priced in.

The co-founder of mining giant Bitmain, Jihan Wu, says that although he’s a long-term Bitcoin bull, he’s also not convinced the halving will trigger the next rally, reports the Chinese crypto news outlet 8BTC.

“Bitcoin halving may not lead to bull market, but I am positive about the long-term trend of Bitcoin’s price.

There are many uncertainties, but now is a good time to invest in crypto mining. If I were a miner, I would not stop mining and continue to invest in mining equipment. We are currently in a short-term correction of price. Having a long-term perspective is important. If Bitcoin’s price remains unchanged after halving, the efficiency of existing equipment must be improved to balance efficiency and computing power.”

 

December 8, 2019

Daily Hodl Staff

The Crypto Daily Movers and Shakers -021219

The Crypto Daily – Movers and Shakers -02/12/19

Bitcoin fell by 1.96% on Sunday. Following on from a 2.52% slide from Saturday, Bitcoin ended the week up 6.96% to $7,450.1.

A particularly bearish start to the day saw Bitcoin slide from an early morning intraday high $7,600.1 to an intraday low $7,288.6.

Falling short of the major resistance levels, Bitcoin fell through the first major support level at $7,440.73.

Finding support at the second major support level at $7,281.57, Bitcoin recovered to an afternoon high $7,523.2.

The return to $7,500 levels was brief, however, with Bitcoin sliding back through the first major support level.

Late support led to a move back through to $7,400 levels to limit the downside on the day.

The near-term bearish trend, formed at late June’s swing hi $13,764.0, remained firmly intact, in spite of the upside in the week.

For the bulls, Bitcoin would need to break out from $11,000 levels to form a near-term bullish trend.

 

The Rest of the Pack

Across the rest of the top 10 cryptos, it was a mixed day for the majors on Sunday.

Bitcoin Cash SV led the way down, sliding by 2.94%.

Binance Coin (-1.72%), Ethereum (-0.42), and Ripple’s XRP (-0.18%) also joined Bitcoin in the red.

It was a bullish day for the rest of the pack, however, with Litecoin and EOS rising by 1.29% and 1.23% respectively to lead the way.

Stellar’s Lumen and Bitcoin Cash ABC saw more modest gains of 0.84% and 0.71% respectively.

For the week, it was green across the board, however, with EOS surging by 15.15% to lead the way.

Bitcoin Cash ABC (7.22%), Ethereum (7.76%), and Litecoin (8.90%) also found strong support.

Binance Coin (3.06%), Bitcoin Cash SV (5.18%), Ripple’s XRP (1.97%), and Stellar’s Lumen (3.41%) trailed the front runners.

Through the week, the crypto total market cap slid to a Monday week low $180.76bn before rebounding to a Saturday week high $211.90bn. At the time of writing, the total market cap stood at $201.29bn.

Bitcoin’s dominance held on to 66% levels. 24-hour trading volumes fell back to sub-$60bn levels on Saturday before recovering to $62bn levels. Earlier in the week, volumes had peaked at $133bn levels.

This Morning

At the time of writing, Bitcoin was down by 0.34% to $7,424.6. A bearish start to the day saw Bitcoin fall from an early morning high $7,462.8 to a low $7,411.3.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was red across the crypto board, with Stellar’s Lumen falling by 1.18% to lead the way down.

Losses elsewhere were modest within the 1st hour, with Ripple’s XRP down by just 0.05%.

For the Bitcoin Day Ahead

Bitcoin would need to move through to $7,450 levels to support a run at the first major resistance level at $7,603.93.

Support from the broader market would be needed, however, for Bitcoin to break through to $7,600 levels.

Barring a broad-based crypto rally on the day, Sunday’s high $7,600.1 and the first major resistance level should cap any upside.

Failure to move through to $7,450 levels could see Bitcoin fall for 3rd consecutive day.

A slide back through to sub-$7,400 levels would bring the first major support level at $7,292.43 into play.

Barring a crypto meltdown, however, Bitcoin should steer clear of the second major support level at $7,134.77.

 

Bob Mason

FX EmpireDecember 2, 2019

Bitcoin Weekly Forecast: BTC Eyeing Last Line Of Defense

Bitcoin Weekly Forecast: BTC Eyeing Last Line Of Defense

  • After a decent recovery, bitcoin price faced resistance near the $7,880 level against the US Dollar.

  • The price is currently correcting gains and it is trading near the $7,300 support area.

  • There is a crucial bearish trend line forming with resistance near $7,678 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

  • The price might test $7,200 or $7,000 before a fresh wave towards the $7,700 resistance.

Bitcoin price is struggling to continue higher above $7,500 and $7,800 against the US Dollar. BTC is approaching the $7,000 support and it could bounce back.
 

Bitcoin Price Weekly Analysis (BTC)

This past week, bitcoin started a decent recovery wave from the $6,521 low against the US Dollar. BTC price gained pace above the $7,000 resistance area. Moreover, there was a break above the key $7,400 resistance area.

Finally, the price rallied above the $7,600 level, but it struggled to test the $8,000 resistance area. It seems like the price formed a short term top near the $7,880 area and the 100 simple moving average (4-hours).

More importantly, there is a crucial bearish trend line forming with resistance near $7,678 on the 4-hours chart of the BTC/USD pair. Bitcoin price is currently correcting lower below the $7,500 level.

Besides, the price is now trading below the 23.6% Fib retracement level of the recent wave from the $6,521 low to $7,873 high. On the downside, an immediate support is near the $7,200 level.

Additionally, the 50% Fib retracement level of the recent wave from the $6,521 low to $7,873 high is near the $7,197 level to provide support. If there are more downsides, the price could test the main $7,000 support area in the near term.

Therefore, a daily close below the main $7,000 support could start a fresh bearish wave. In the mentioned case, the price is likely to break the $6,500 support in the near term.

On the upside, the price is facing a lot of hurdles near the $7,700 and $7,800 levels. However, the price must settle above the $8,000 resistance area, the trend line, and the 100 simple moving average (4-hours) to start a strong rise in the coming weeks.

Bitcoin Price

 

Looking at the chart, bitcoin price is facing a fresh round of selling below $7,500. Though, the price is approaching a couple of important supports near $7,200 and $7,000, where the bulls are likely to take a stand.

 

Technical indicators

4 hours MACD – The MACD for BTC/USD is currently gaining bearish momentum.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now declining and it is well below the 50 level.

Major Support Level – $7,000

Major Resistance Level – $7,700

 

Aayush Jindal

Bitcoin Prices Rebounded so What’s Next?

Bitcoin Prices Rebounded, so What’s Next?

Cautiousstill in the air as market prepares for the year-end

Overview

The prices of bitcoin initially stabilized near the 7500 levels after dipping into the 6500 area earlier this week. As we wrap up November, where will bitcoin prices go from here? While altcoins also have shown signs of recovery, what does that mean to the “Alt Season” believers?

Bitcoin: Short Term Cautiously Optimistic; Medium TermStill Cloudy

The prices of bitcoin have initially recovered from the November low of 6513, but the short-term and medium-term outlooks of the leading cryptocurrency could be two different pictures. On the short term front, preliminary data shows that market sentiment has turned slightly positive alongside the prices rebound. The Crypto Fear & Greed Index has jumped from 17 to 32 on September 28, suggesting market participants have eased certain of their worries as the price stabilized, although the reading is still considered at a “Fear” level.

Figure 1: Crypto Dear & Greed Index (Source: Alternative.me)

Technical-wise, we’ve also seen preliminary recovery signals, but the rebound could soon be tested again, and the coming days could be key to determine if that’s a true reversal or just a short-lived rally.

Figure 2a shows BTCUSDT has initially formed an uptrend on a 3-hour chart (red channel), the rebound hit the upper end of the channel, which is also near the major resistance line since late October (yellow line).

While both the ultimate oscillator and RSI have produced some higher highs, suggesting upside momentum has been building up. From here, two scenarios could happen. 1) The 3-hour chart could first find the bottom support of the latest uptrend before retest the October resistance, given that the pair must produce a higher low. 2) The pair consolidate at current levels until the momentum fades, if seen, the breaking of the lower end of the uptrend could be the first warning sign of further corrections. If we are going to begin to see a 3-hour upturn as is our bias, it would further support the likelihood of the first scenario.

Figure 2a: BTCUSDT 3-Hour Chart (Source: OKEx; Tradingview)

Figure 2b: BTCUSDT Daily Chart (Source: OKEx; Tradingview)

However, things would be less optimistic if we see it from the daily chart perspective. Figure 2b shows an initial daily reversal of BTCUSDT and the rebound has sent the price back above the June resistance levels (red line). We’ve seen the October rally have sent the price above the resistance levels; however, the pair has failed to turn it into support as the rally ran out of steam.

While the reversal, for now, is still too early to call a real trend reversal, we would like to see those momentum indicators to produce some higher highs, and so far, that has not happened. If the rally momentum fails to sustain, a retest of the blue support line could not be ruled out.

Figure 3: Sentix Bitcoin Strategic Bias (Source: Sentix)

From a longer-term perspective, data from Sentix suggests that some investors still believe that bitcoin remains overvalued. The Sentix Bitcoin Strategic Bias, which measures investors’ six-month perception value of bitcoin. It reflects the strategic view of market participants as well as their underlying convictions and perceptions of value for the cryptocurrency market. The Bias has been moving in a down channel since August. The negative perception could hinder investors to get into the market at this point, especially for long-term HODLers.

Alt-Season: Long Way to Go

While major altcoins have already off their recent lows, we are still very far away from a true start of an “Alt-Season”.

The broader altcoins have made its third attempt to breakout from the market cap downward channel in early November, at the same time, it tried to break above the 365-day moving average (orange line). As the rally momentum fades, altcoin has retreated into the channel in late November.

Figure 4: Crypto Total Market Cap Ex-BTC in Log Scale (Source: Tradingview)

The lower end of the channel (blue line) seems like decent support at this point. However, as the overall conservative sentiment lingers, in our view, we believe that more consolidation is needed for the altcoin market cap before the next breakout attempt happens. This chart could be a quick way to measure the broader altcoin market perceptions.

 

Cyrus Ip

Bitcoin going berserk in November makes holidays awkward

Bitcoin going berserk in November makes holidays awkward

Since 2011 the cryptocurrency’s biggest monthly change up or down has occurred in the month before Christmas.

This month, Bitcoin saw longest streak of down days on record. Image: Bloomberg NewsThis month, Bitcoin saw longest streak of down days on record. Image: Bloomberg News

For better or worse, the month of November has always been one to remember in the world of Bitcoin.

Reasons cited for its volatile moves during the 11th month of the year run the gamut from tax-loss harvesting, to its round-the-clock trading nature, to Mercury being in retrograde. It could also just be coincidence. Whatever the cause, Bitcoin tends to go berserk in November.

Take this month, when the world’s largest cryptocurrency fell for 10 consecutive days through Tuesday of this week, notching its longest streak of down days on record. Even with Wednesday’s 6% rebound, the retreat pushed its price down about 17% and put it on pace for its worst month since November of last year. That was when Bitcoin posted it second-worst run in its history — a streak of nine down days that saw it lose 38% of its value through the end of the month, according to data compiled by Bloomberg.

November has also been substantially more volatile for Bitcoin compared with other months, according to Bespoke Investment Group. Since 2011, its biggest monthly change up or down has occurred in November, with the average move coming in about 20 percentage points higher than the next largest.

“It just moves in ways that are not cyclical like other businesses and other markets,” Bobby Cho, a partner at CMS Holdings, said in a phone interview. “Toward the end of the year, other asset classes may start to quiet down just because it’s the holidays and things like that. But in crypto, because of the global nature and it never closing effectively, things are always happening.”

For years now, Bitcoin’s explosive November moves have made it a hot topic at Thanksgiving dinners around the country. This time in 2017, for instance, Bitcoin evangelists had a lot to be thankful for, with investors and speculators alike hopping on the crypto gravy train while it soared at an unprecedented rate. Through Thanksgiving day that year, Bitcoin had already posted a monstrous 760% gain for the year.

Fast forward to last year and those even remotely tied to the industry had a lot more explaining to do. The day before Thanksgiving, Bitcoin was trading around $4 400, having dropped about 69% for the year.

“Price and emotions tend to work together so when prices are at all-time highs, everyone is euphoric and probably way over their skis with regard to how fast this industry is going to grow,” Jeff Dorman, chief investment officer at Los Angeles-based investment firm Arca, said by phone. “And when things are in contraction, prices are down, everyone is depressed and acting like the world is ending.”

And this year? Despite its recent drop, Bitcoin’s still up about 95% in 2019, though it’s far off its all-time high of near $20,000 reached in December 2017. A swirl of negative headlines pushed crypto prices lower this month, chief among them China’s sudden and swift crackdown on the trading of digital assets.

Still, the decline has left many undaunted. If anything, they say, it’s a sign cryptocurrencies are maturing — the price swings are similar to those in other asset classes. After all, the argument goes, it’s still a relatively nascent market.

For Nigel Green of deVere Group, the fluctuations are no different than volatility that’s prevalent elsewhere.

“There are peaks and troughs in all financial markets; the cryptocurrency market is not — and should not be — any different,” said the firm’s chief executive officer. “Each time there is a dip in the market or a bout of volatility in cryptocurrencies, the crypto haters declare that digital currencies are finished — only for them to subsequently experience a rally. The same people do not make such extreme and unfounded statements with most other financial markets.”

 

Vildana Hajric, Bloomberg / 28 November 2019 06:36

Bitcoin BTC Hesitates But Further Recovery Above 72K Seem Likely

Bitcoin (BTC) Hesitates But Further Recovery Above $7.2K Seem Likely

  • Bitcoin is currentl trimming gains after struggling to clear the $7,400 barrier against the US Dollar.

  • The price is likely to stay above the $7,000 and $6,950 support levels in the near term.

  • There is likely a bullish flag forming with resistance near $7,170 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • There are chances of a nice upward move if the price surges above $7,200 and $7,400.

Bitcoin price is trading below a few key resistance such as $7,400 against the US Dollar. Having said that, BTC seems to be forming a bullish continuation pattern as long as $6,950 holds.
 

Bitcoin Price Analysis

Yesterday, there was a decent start of an upside correction from the $6,535 low against the US Dollar. BTC climbed nicely above the $6,800 and $7,000 resistance levels.

Besides, it spiked above the $7,200 resistance area and the 100 hourly simple moving average. However, the price struggled to continue above the $7,375 and $7,400 resistance levels.

A high was formed near $7,372 and the price is currently trimming gains. Bitcoin traded below the $7,200 level and the 100 hourly simple moving average. Moreover, there was a break below the 23.6% Fib retracement level of the recent rise from the $6,535 low to $7,372 high.

On the downside, there are a few key supports near the $7,025, $7,000 and $6,950 levels. The main support for the current wave is near $6,950 since it is near the 50% Fib retracement level of the recent rise from the $6,535 low to $7,372 high.

If there is downside break and close below $6,950, the price is likely to resume its decline. The next supports are near the $6,660 and $6,540 levels. On the upside, an initial resistance is near the $7,150 level and the 100 hourly SMA.

More importantly, there is likely a bullish flag forming with resistance near $7,170 on the hourly chart of the BTC/USD pair. Therefore, an upside break above $7,200 might set the pace for more upsides and recovery.

The main resistance area is near the $7,375 and $7,400 levels. A successful close and follow through above $7,400 will most likely set the pace for a strong recovery.

Bitcoin Price

Looking at the chart, bitcoin price is holding a couple of important supports near $6,950. As long as there is no close below $6,950, there are chances of upside continuation above $7,200 and $7,400.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.

Major Support Levels – $7,000 followed by $6,950.

Major Resistance Levels – $7,200, $7,375 and $7,400.

 

Aayush Jindal

Bitcoin falls to six-month low trades below 7000

Bitcoin falls to six-month low, trades below $7,000

Bitcoin sank nearly 10 percent to the lowest level in six months, extending last week’s slide past the weekend on concerns about a crackdown on cryptocurrency operations by China.

The digital currency plunged as much as 9.8 percent from Friday’s close and was trading just above $6,700 as of 11 a.m. in Hong Kong, according to Bloomberg composite pricing. It’s the first time since May that Bitcoin traded below the key $7,000 psychological level.

The world’s largest cryptocurrency is also on track for eight straight days of declines, tying a record losing streak from 2014, according to Bitstamp pricing going back to August 2011 and including weekend trading.

“Investors can find more joy in traditional markets without the aggressive volatility and opaque markets,” said Jeffrey Halley, senior market strategist for Asia Pacific at Oanda Asia Pacific Pte. “A sustained rally in Bitcoin would require a complete breakdown in the trade negotiations to happen as financial authorities across the world continue to circle the wagons against digital currencies.”

On Friday, the People’s Bank of China told businesses involved with cryptocurrencies to correct any improper actions and asked investors to be wary of virtual currencies. Earlier this month, watchdogs in Shanghai issued notices calling for a cleanup of companies involved in crypto trading, while one in Beijing warned against illegal exchange operations.

There are plenty of other possible explanations for the drop. Traders are blaming low volumes and citing attractive returns from traditional assets, eToro UK market analyst Adam Vettese wrote in a note Friday. Smaller miners are also getting squeezed out by the falling price, causing further selling toward the break-even level of around $5,600 to $6,400, Vijay Ayyar, Singapore-based head of business development at crypto exchange Luno, said Monday.

“We’re seeing what is called miner capitulation and that has indicated previous large drops in the price of Bitcoin,” he said. “At this time, the cost of production could be indicated to be in the $6,000 range and hence we’ve seen the price dip to that range last week.”

Bitcoin is still up substantially in 2019 — it ended last year at $3,674. After a meteoric rise from April to June, when it soared above $13,000, it lost momentum and has been gradually dropping since.

 

Joanna Ossinger and Eric Lam

Bloomberg

Singapore / Mon, November 25, 2019 / 11:28 am

Bitcoin Weekly Forecast -BTC Aiming Key 65K Support

Bitcoin Weekly Forecast –  BTC Aiming Key $6.5K Support

  • There was a sharp decline in bitcoin below the $8,000 and $7,500 supports against the US Dollar.

  • The price is currently correcting losses, but remains at a risk below $7,400.

  • There is another breakdown pattern forming with support near $7,240 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

The price is currently trading below the $7,500 resistance and likely to decline further.

Bitcoin price is trading in a strong downtrend below $7,500 against the US Dollar. BTC is likely to continue lower towards the main $6,500 bearish target.

Bitcoin Price Weekly Analysis (BTC)

This past week, bitcoin started a nasty decline below the $8,000 support area against the US Dollar. As a result, BTC price gained bearish momentum below the $7,800 support and the 100 simple moving average (4-hours).

It opened the doors for more losses and the price even declined sharply below the $7,500 support. Moreover, the price tested the $7,000 support area (the first bearish target as per the medium term outlook).

Finally, the price spiked below $6,900 and a new multi-month low was formed near the $6,776 level. At the outset, bitcoin price is correcting higher and recently traded above the 23.6% Fib retracement level of the last decline from the $8,213 high to $6,776 low.

However, the upward correction is facing resistance near the $7,400 level. Additionally, there is another breakdown pattern forming with support near $7,240 on the 4-hours chart of the BTC/USD pair.

If there is a downside break below $7,240 and $7,200, there are chances of more downsides in the near term. In the mentioned case, the price is likely to break the $7,000 support and $6,800 level. The main target for the bears seem to be the $6,500 support area.

On the upside, the price must break the triangle resistance and $7,400. Besides, the 50% Fib retracement level of the last decline from the $8,213 high to $6,776 low is near the $7,500 level.

The key resistance is near the $7,550 level and a connecting bearish trend line on the same chart. A clear break above the $7,500 and $7,550 resistance levels could set the pace for more gains.

Bitcoin Price

Looking at the chart, bitcoin price is likely setting up for another breakdown below the $7,200 and $7,000 support levels. Conversely, a close above $7,550 is needed for a correction towards the $8,000 level in the coming days.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering, but it is well below the 40 level.

Major Support Level – $7,000

Major Resistance Level – $7,550

 

Aayush Jindal