Bitcoin price is currently showing a few bearish signs below the $7,000 resistance area.
There is a strong support forming above $6,400 and the 100 simple moving average (4-hours).
There is a key bullish trend line forming with support at $6,425 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair could make another attempt to surpass the $7,000 and $7,200 resistance levels in the near term.
Bitcoin is Holding Crucial Support
This past week, bitcoin traded higher above the $6,400 and $6,500 resistance levels against the US Dollar. BTC price even spiked above the $7,000 resistance and settled nicely above the 100 simple moving average (4-hours).
It traded as high as $7,273 before starting a downside correction. The price settled below the $7,000 level to start the correction. Besides, there was a spike below the 50% Fib retracement level of the upward move from the $6,150 low to $7,273 high.
The price tested the $6,600 support area and it is currently consolidating in a range. It seems like the 61.8% Fib retracement level of the upward move from the $6,150 low to $7,273 high is acting as a support.
There is also a key bullish trend line forming with support at $6,425 on the 4-hours chart of the BTC/USD pair. More importantly, the 100 simple moving average (4-hours) is near the trend line and the $6,400 support.
Bitcoin Price
If BTC fails to stay above the $6,400 support and the 100 SMA, there is a risk of a significant decline. The next key support is near the $6,000 level, below which it could even test the $5,800 support area.
Upside Break
Bitcoin bulls need to protect the $6,400 support and the 100 SMA for another increase in the near term. On the upside, an initial hurdle is near the $7,000 level.
A successful break above the $7,000 resistance level could spark a strong rally above the $7,200 and $7,270 levels. The next major resistance is near the $7,500 level, above which the price is likely to test the $7,880 level.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly moving into the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining towards the 50 level.
Major Support Level – $6,400
Major Resistance Level – $7,000
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