Bitcoin Buyers Lose Control, But 2 Key Technicals Show One Last Rally is Imminent
Bitcoin is struggling to surpass the $7,800 resistance area against the US Dollar. It seems like BTC price could dip towards $7,600 or $7,400 before a fresh rally towards $8,000.
- Bitcoin made two attempts to clear the $7,800 hurdle against the US Dollar, but it failed.
- The price is showing a few bearish signs and it could correct towards $7,600 or $7,400.
- It is testing a major bullish trend line with support near $7,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct a few points, but a run towards the $8,000 resistance is still on the cards.
Bitcoin Losing Bullish Momentum
In the past two sessions, bitcoin made two attempts to clear the $7,800 hurdle against the US Dollar. However, BTC price seems to be losing bullish momentum above $7,700 and it could correct lower in the near term.
The recent high was formed near $7,796 and the price is currently moving lower. It declined below the 23.6% Fib retracement level of the upward move from the $7,485 swing low to $7,796 high.
Bitcoin price is now testing a major bullish trend line with support near $7,700 on the hourly chart of the BTC/USD pair. If there is a successful close below the trend line support and $7,700, there is a risk of more downsides.
The next support is near the $7,640 level. It represents the 50% Fib retracement level of the upward move from the $7,485 swing low to $7,796 high. The main support is near the $7,600 level and the 100 hourly simple moving average.
If the bulls fail to protect the $7,600 support area (the recent breakout zone), there could be an extended decline. In the mentioned case, the price is likely to continue lower towards the next major support at $7,400.
Upside Thrust To $8,000?
In the near term, an upside thrust towards the $8,000 level is possible. If bitcoin price stays above the $7,600 support or the $7,400 uptrend pivot, there are chances of a run towards the $8,000 level.
Any further gains are likely to be limited, considering a major near the $8,000 level (as discussed in one of the previous analyses using the daily chart).
Hourly MACD – The MACD is now moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and it is just below the 50 level.
Major Support Levels – $7,600 followed by $7,400.
Major Resistance Levels – $7,800, $8,000 and $8,080.
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