Bitcoin Price (BTC) Crashes To $7K, Upsides Remain Capped
Bitcoin price crashed in the past three sessions below the $7,680 and $7,520 support levels. BTC to USD is currently under a lot of pressure and upsides are likely to face sellers near $7,325 or $7,520.
Key Takeaways: BTC/USD
- Bitcoin price is down close to 10% and tested the $7,000 zone against the US Dollar.
- BTC/USD is facing many hurdles near $7,325, $7,520, $7,710 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is down more than 12% and bitcoin cash tumbled towards $200.00.
Bitcoin Price Analysis
In the past two days, there was a sharp decline in bitcoin price below the $7,990 and $7,710 support levels. The recent decline in BTC to USD was strong and gained pace below $7,520.
Looking at the 2-hours chart, bitcoin even settled below the $7,500 support area and the 50 simple moving average (2-hours, purple). The recent dive was initiated after the price broke a rising channel with support near $7,520.
It opened the doors for more downsides below $7,200. Finally, the price tested the $7,000 support and a new monthly low was formed near the $6,938 level. Bitcoin is currently correcting higher and trading above the $7,050 level.
Moreover, it is testing the 23.6% Fib retracement level of the recent slide from $7,712 to $6,938. On the upside, there are many resistances near the $7,200 and $7,300 levels.
The first key resistance is near the $7325 level since it is the 50% Fib retracement level of the recent slide from $7,712 to $6,938. The next major resistance is near the $7,520 (the recent breakdown support).
Finally, there is a major bearish trend line forming with resistance near $7,800 on the same chart. Therefore, a clear break above the $7,520 resistance won’t be easy in the near term.
On the downside, an initial support is near the $7,000 handle. If bitcoin price fails to stay above the $7,000 support, there is a risk of another decline towards the $6,800 and $6,740 levels. The next major support area is seen near the $6,600 level.