- Bitcoin is currently trimming gains after struggling to clear the $ 7,400 barrier against the US Dollar.
- The price is likely to stay above the $ 7,000 and $ 6,950 support levels in the near term.
- There is likely a bullish flag forming with resistance near $ 7,170 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- There are chances of a nice upward move if the price surges above $ 7,200 and $ 7,400.
Bitcoin price is trading below a few key resistance such as $ 7,400 against the US Dollar. Having said that, BTC seems to be forming a bullish continuation pattern as long as $ 6,950 holds.
Bitcoin Price Analysis
Yesterday, there was a decent start of an upside correction from the $ 6,535 low against the US Dollar. BTC climbed nicely above the $ 6,800 and $ 7,000 resistance levels.
Besides, it spiked above the $ 7,200 resistance area and the 100 hourly simple moving average. However, the price struggled to continue above the $ 7,375 and $ 7,400 resistance levels.
A high was formed near $ 7,372 and the price is currently trimming gains. Bitcoin traded below the $ 7,200 level and the 100 hourly simple moving average. Moreover, there was a break below the 23.6% Fib retracement level of the recent rise from the $ 6,535 low to $ 7,372 high.
On the downside, there are a few key supports near the $ 7,025, $ 7,000 and $ 6,950 levels. The main support for the current wave is near $ 6,950 since it is near the 50% Fib retracement level of the recent rise from the $ 6,535 low to $ 7,372 high.
If there is downside break and close below $ 6,950, the price is likely to resume its decline. The next supports are near the $ 6,660 and $ 6,540 levels. On the upside, an initial resistance is near the $ 7,150 level and the 100 hourly SMA.
More importantly, there is likely a bullish flag forming with resistance near $ 7,170 on the hourly chart of the BTC/USD pair. Therefore, an upside break above $ 7,200 might set the pace for more upsides and recovery.
The main resistance area is near the $ 7,375 and $ 7,400 levels. A successful close and follow through above $ 7,400 will most likely set the pace for a strong recovery.
Looking at the chart, bitcoin price is holding a couple of important supports near $ 6,950. As long as there is no close below $ 6,950, there are chances of upside continuation above $ 7,200 and $ 7,400.
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
Major Support Levels – $ 7,000 followed by $ 6,950.
Major Resistance Levels – $ 7,200, $ 7,375 and $ 7,400.