Bitcoin Bears Rejected $7,300, Price Vulnerable Below $7K
- Bitcoin was rejected on a few occasions near $7,260 and $7,300 against the US Dollar.
- The price is currently declining and it remains at a risk of more downsides below $7,000.
- There is a declining channel forming with resistance near $7,180 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Ethereum is also struggling below $132, but it is likely to bounce back as long as it is above $120.
Bitcoin price is showing a few bearish signs below $7,300 and $7,260 against the US Dollar. BTC could decline heavily if there is a clear break below $7,000.
Bitcoin Price Analysis
In the past few days, bitcoin bulls failed to gain traction above $7,320 and $7,300 against the US Dollar. Moreover, there were a few attempts to rise steadily above $7,300, but BTC failed to settle above $7,260.
The price is now trading well below $7,300 and the 100 hourly simple moving average. The last swing high was formed near $7,235 before the price declined below the $7,200 support.
Besides, there was a break below the 50% Fib retracement level of the upward move from the $7,111 low to $7,235 high. It opened the doors for more losses below $7,150 and $7,100.
At the moment, bitcoin price is trading below the last swing low at $7,111. Therefore, it could extend its decline towards the 1.236 Fib extension level of the upward move from the $7,111 low to $7,235 high at $7,082.
However, the bears are likely to gain momentum below $7,080. In the mentioned case, the next target may perhaps be $7,000 in the coming sessions. An intermediate support is $7,040 or the 1.618 Fib extension level of the upward move from the $7,111 low to $7,235 high.
Any further weakness below $7,000 might accelerate decline and the price could even hit the $6,800 support area. On the upside, there are many hurdles forming near $7,200 and $7,260.
Additionally, there is a declining channel forming with resistance near $7,180 on the hourly chart of the BTC/USD pair. A successful break above the channel resistance, $7,260, the 100 hourly SMA, and the $7,300 barrier is needed to start a decent upward move towards the $7,500 resistance.
Looking at the chart, bitcoin price is clearly struggling to climb above $7,260 and the 100 hourly SMA. As a result, there are chances of a sharp decline below the $7,080 and $7,000 support levels.
Hourly MACD – The MACD is currently gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.
Major Support Levels – $7,080 followed by $7,000.
Major Resistance Levels – $7,260, $7,300 and $7,320.
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