Bitcoin Price (BTC) Could Rally Again If It Breaks $7,400
Bitcoin price is currently holding the $7,180 support area and consolidating losses. BTC to USD must surpass the $7,400 resistance area to start a fresh increase in the near term.
Key Takeaways: BTC/USD
- Bitcoin price declined recently from the $7,864 high against the US Dollar.
- BTC/USD is following a major bearish trend line with resistance near $7,340 on the 2-hours chart (data feed from Bitstamp).
- Ethereum is struggling to clear $151.50, but ripple is back above the $0.2205 support.
Bitcoin Price Analysis
In the past two days, there was a fresh decline in bitcoin price from the $7,864 swing high. BTC to USD traded below a few supports such as $7,660 and $7,440. It opened the doors for more losses below the $7,400 level.
Looking at the 2-hours chart, bitcoin settled above the $7,340 level and the 50 simple moving average (2-hours, purple). Finally, the price tested the $7,180 support area.
A low was formed near $7,145 and the price is currently consolidating losses. An immediate resistance is near the $7,320 level. It is near the 23.6% Fib retracement level of the recent decline from $7,864 to $7,145.
Moreover, bitcoin price is following a major bearish trend line with resistance near $7,340 on the 2-hours chart. If there is an upside break above the $7,340 and $7,400 resistance levels, there could be a decent rise in the coming session.
The next key resistance is near the $7,505 level and the 50 simple moving average (2-hours, purple). It also coincides with the 50% Fib retracement level of the recent decline from $7,864 to $7,145.
Any further gains may perhaps push the price towards the $7,660 and $7,700 resistance levels. On the downside, the $7,180 zone is a major support area.
If there is a downside break below the $7,180 support zone, the price could continue to move down towards the $7,040 support area.
Overall, bitcoin is trading near a crucial juncture at $7,340 and $7,400. There are positive signs and high chances of a fresh increase above the $7,400 barrier.