• Bitcoin price is diving and it recently broke the $8,000 support area against the US Dollar.
• The price is under a lot of pressure and recently traded to a new monthly low at $7,828.
• Morning’s bearish flag pattern was breached with support near $8,080 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The next key target for the bears could be $7,400 (as discussed in the recent medium term outlook).

Bitcoin price is gaining bearish momentum below $8,000 against the US Dollar. More importantly, there is now very less chances of BTC recovering above $8,250 before testing $7,400.

Bitcoin Price Analysis

In morning, we discussed the chances of a breakdown in bitcoin below the $8,000 support area against the US Dollar. BTC made an attempt correct above the $8,150 resistance, but it failed to gain traction and remained well below the 100 hourly simple moving average.

As a result, there was another bearish break below the $8,050 support. Moreover, morning’s bearish flag pattern was breached with support near $8,080 on the hourly chart of the BTC/USD pair.

Finally, the price declined below the $8,000 support and the last swing low. A new monthly low was formed near $7,828 and the price is currently correcting higher.

An immediate resistance for bitcoin is near the $7,920 level. It represents the 23.6% Fib retracement level of the recent decline from the $8,221 high to $7,828 low. The first key resistance on the upside is near the $8,000 level (the recent breakdown support).

Additionally, the 50% Fib retracement level of the recent decline from the $8,221 high to $7,828 low is near the $8,020 level to prevent gains. Lastly, there is a new connecting bearish trend line forming with resistance near $8,020 on the same chart.

Therefore, the price is likely to face a strong resistance if it corrects higher towards $8,000 and $8,020. A convincing break above the $8,020 resistance may perhaps lift the price towards the $8,200 resistance.

On the downside, it seems like the gates for a test of the $7,400 support is now open (the next bearish target as discussed in the recent medium term outlook).

Bitcoin PriceLooking at the chart, bitcoin price is clearly gaining bearish momentum below the $8,000 support area. There are high chances of additional losses towards the $7,400 support unless the price rallies above $8,020 and $8,200 in the near term.

Technical indicators:

Hourly MACD – The MACD is gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering from the oversold levels.

Major Support Levels – $7,640 followed by $7,400.

Major Resistance Levels – $8,000, $8,020 and $8,200.

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