Bitcoin price started a downside correction and moved below $7,600 against the US Dollar. BTC/USD found support near $7,300 and is currently showing positive signs.
- Bitcoin price declined and traded below the $7,600 and $7,450 support levels.
- BTC/USD is following a declining channel with resistance at $7,505 on the 2-hours chart.
- An important bullish trend line is forming with support at $7,130 on the daily chart.
Bitcoin Price Weekly Analysis
Bitcoin price traded with bullish moves above $8,200 until it faced sellers near $8,450 level against the US Dollar. The BTC/USD pair failed to settle above $8,450 and $8,500, resulting in a downside move.
Looking at the 2-hours chart, the price declined and broke a few key supports such as $7,800, $7,820, $7,600 and $7,350. It even traded a few points below the $7,300 level and formed a low at $7,290.
Later, the price started an upward correction and moved above the $7,400 level plus the 21 simple moving average (2-hours). However, the price is facing a tough resistance near the $7,500 level and the 23.6% Fib retracement level of the last drop from the $8,200 high to $7,290 low.
Moreover, there is a declining channel in place with resistance at $7,505 on the same chart. Should the price surpass the channel resistance, it could accelerate its recovery above the $7,600 level.
The next significant resistance on the upside is at $7,745 and the 50% Fib retracement level of the last drop from the $8,200 high to $7,290 low. Above this, the price may face barrier near $7,820, which was a support earlier.
On the flip side, if the price fails to settle above $7,500, it could decline once again. An initial support is near $7,300 and $7,290, below which, the price will most likely test the $7,100 area.
More importantly, there is an important bullish trend line forming with support at $7,130 on the daily chart. Therefore, if bitcoin price slides further, it is likely to find strong supports near $7,130 and $7,100.
Overall, the current price action indicates that bitcoin price is slowly recovering, but a break above $7,500 is must for a larger upward move.
The market data is provided by TradingView, Coinbase.