Bitcoin price failed near the $7,400 level and tumbled below $6,600 against the US Dollar. BTC/USD broke key supports on the daily chart to move into a bearish zone.
- Bitcoin price topped at $7,401 and declined sharply below $6,840 and $6,600.
- BTC/USD broke a crucial ascending channel with support at $7,010 on the daily chart.
- The pair is forming a bearish pennant with support at $6,360 on the 2-hours chart.
Bitcoin Price Weekly Analysis
Bitcoin price was in a nice uptrend above the $7,200 level against the US Dollar. However, the BTC/USD pair faced a strong resistance near the $7,400 level, which resulted in a sharp decline below $7,200 and $7,000.
Looking at the daily chart, the price formed a top at $7,401 and started declining. It broke a crucial ascending channel with support at $7,010 to move into a bearish zone.
More importantly, it broke the $6,840 support zone and also settled below the 25-day simple moving average. Finally, there was a break below the 50% Fib retracement level of the wave from the $5,916 low to $7,401 high.
The price even broke the $6,480 support area and traded close to the $6,270 level and the 76.4% Fib retracement level of the wave from the $5,916 low to $7,401 high. At the moment, the price is consolidating losses above the $6,300 level with bearish moves.
If there is an upward move, the broken support near $6,840 and the 25-day simple moving average are likely to act as strong barriers for bitcoin buyers. Dropping down to the 2-hours chart of BTC, the price is clearly in a bearish trend below $6,600.
It is currently trading inside a bearish pennant with support at $6,360. If sellers succeed in pushing the price below the pennant support, there could be another round of selling. The next supports on the downside are seen at $6,120 and $6,020. Below $6,020 and $6,000, the price could test the $5,800 support area.
Overall, bitcoin price is under a lot of pressure with a daily close below $6,840. More losses are on the cards for BTC/USD below the $6,270 level in the near term.
The market data is provided by TradingView, Coinbase.