Bitcoin Downside Thrust Possible Before Key Reversal

  • Bitcoin price spiked towards $7,400, but it failed to retain strength against the US Dollar.
  • The bulls need to protect the $7,120 and $7,000 support levels in the near term.
  • There is a major bearish trend line active with resistance near $7,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could spike towards the $7,000 support area before it attempts a strong increase.

Bitcoin price is holding the key $7,120 and $7,000 support levels against the US Dollar. BTC is facing many hurdles on the upside near $7,300 and $7,400.

Bitcoin Price Analysis

After forming a support base near the $7,120, bitcoin price climbed higher recently against the US Dollar. The price rallied above the $7,250 and $7,300 resistance levels.

Moreover, there was a spike above the $7,400 level and the 100 hourly simple moving average. However, the price struggled to remain steady above the $7,400 level and formed a swing high near $7,431.

As a result, the price trimmed most gains and declined below $7,300. Besides, it is now trading well below the $7,250 level and the 100 hourly SMA. A low is formed near $7,150 and the price is currently consolidating losses.

An initial resistance is near the 23.6% Fib retracement level of the recent drop from the $7,431 high to $7,150 low. The first key resistance is near the $7,300 level.

Additionally, the 50% Fib retracement level of the recent drop from the $7,431 high to $7,150 low is near the $7,300 level. More importantly, there is a major bearish trend line active with resistance near $7,360 on the hourly chart of the BTC/USD pair.

If there is an upside break above the $7,300 level, the 100 hourly SMA, and the bearish trend line, then bitcoin price could attempt to rally above the $7,400 resistance area.

Conversely, the price might continue to struggle near $7,300 and $7,400. On the downside, the $7,120 level is a key support zone. If there is a downside break below $7,120, the price could struggle to hold the $7,000 support.

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