- Bitcoin price declined recently and tested the key $7,500 support area against the US Dollar.
- The price rebounded and traded above the $7,780 and $7,850 resistance levels.
- Yesterday’s highlighted key declining channel is acting as a barrier near $7,980 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could drop once again towards the $7,720 support area before it starts a fresh increase.
Bitcoin price rebounded nicely above $7,700 and $7,850 against the US Dollar. However, BTC is facing a strong resistance and it could decline again before the bulls take control.
Bitcoin Price Analysis
Yesterday, we saw a major downside correction in bitcoin price below the $7,850 support against the US Dollar. The BTC/USD pair traded below the $7,720 support level and the 100 hourly simple moving average. Besides, it broke the key $7,660 support and tested the $7,500 support area. A swing low was formed at $7,475 and the price recently rebounded nicely above $7,660. The bulls pushed the price above the $7,720 and $7,850 resistance levels.
However, it seems like the price is struggling to gain momentum above $7,950 and $8,000. Moreover, yesterday’s highlighted key declining channel is acting as a barrier near $7,980 on the hourly chart of the BTC/USD pair. The recent high was at $7,994 and the price is currently moving lower. An immediate support is near $7,800, below which the price could test the 50% Fib retracement level of the upward move from the $7,475 low to $7,994 high. The current price action indicates that the price is facing a strong resistance near $7,980 and $8,000.