Bitcoin price declined sharply and broke the $8,060 support level against the US Dollar.There is a key bearish trend line formed with resistance near $8,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair is likely to consolidate in the short term below the $8,060 and $8,200 resistances.
Bitcoin price trimmed its intraday gains against the US Dollar. BTC/USD settled below $8,000 and is currently trading in a range near $7,900.
Bitcoin Price Analysis
Yesterday, there was a start of a downward move from the $8,500 swing high in Bitcoin price against the US Dollar. The BTC/USD pair declined and broke the $8,300 and $8,100 support levels. There was also a close below the $8,060 support level and the 100 hourly simple moving average. The price even broke the $8,000 support and traded as low as $7,836.
At the moment, the price is trading in a range near the $7,900 level. An initial resistance is the 23.6% Fib retracement level of the last decline from the $8,500 high to $7,836 low. The next hurdle is near the $7,060 resistance, which was a support earlier. The stated $7,060 resistance also coincides with the 100 hourly SMA. Above this, there is a key bearish trend line formed with resistance near $8,200 on the hourly chart of the BTC/USD pair. The trend line is positioned near the 50% Fib retracement level of the last decline from the $8,500 high to $7,836 low.
Looking at the chart, the price is currently holding the $7,850 level. Should there be a break below this, the price could decline towards the $7,650 support area. In the short term, there could be range moves between $7,700 and $8,200.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently flat near the 30 level.
Major Support Level – $7,850
Major Resistance Level – $8,200