After a sharp decline, bitcoin price consolidated above the $7,400 level. Finally, BTC to USD started an upside correction and it is now trading above the $7,520 resistance.

Key Takeaways: BTC/USD

• Bitcoin price is currently correcting higher and is trading above the $7,600 level against the US Dollar.
• BTC/USD broke the $7,520 resistance and a contracting triangle on the 2-hours chart (data feed from Bitstamp).
• Ethereum, ripple, and bitcoin cash are also correcting higher, but they are facing many resistances.

Bitcoin Price Analysis

Recently, we saw a major drop in bitcoin price below the $7,700 and $7,500 supports. BTC even broke the $7,500 area and traded towards the $7,280 support zone. A low was formed near $7,297 and the price started an upside correction in the past two sessions.

Looking at the 2-hours chart, bitcoin consolidating above the $7,400 for a few sessions and settled below the 50 simple moving average (2-hours, purple). At the moment, it is correcting higher and is trading above the $7,500 resistance zone.

During the recent rise, the price surpassed the $7,520 resistance and a contracting triangle on the same chart. Moreover, there was a break above the 23.6% Fib retracement level of the last slide from $8,315 to $7,297. It opened the doors for more gains above the $7,600 level.

An immediate resistance on the upside is near the $7,680 and $7,700 levels. However, the main resistance is near the $7,805 level and the 50 simple moving average (2-hours, purple). It also coincides with the 50% Fib retracement level of the last slide from $8,315 to $7,297.

Therefore, bitcoin is likely to face a strong resistance near the $7,800-$7,805 area if it continues to climb in the near term. The next major resistance is near $7,925 and the 61.8% Fib retracement level of the last slide from $8,315 to $7,297.

Once BTC completes the current upside correction near $7,700 or $7,800, it could resume its decline. An immediate support is near the $7,500 area, below which the price could visit the $7,280 support area in the near term.