Bitcoin Price (BTC) Downturn Could Gather Momentum Below $7,500
Bitcoin price dived more than 10% in the past three sessions and traded below $8,000. BTC to USD is now trading in a bearish zone, with a risk of more losses below $7,500.
Key Takeaways: BTC/USD
- Bitcoin price is down more than 8% and it broke the $8,000 pivot level against the US Dollar.
- BTC/USD broke a crucial contracting triangle support at $8.940 on the 2-hours chart (data feed from Bitstamp) to enter a bearish zone.
- Ethereum is also down more than 8% and it tested the main $200.00 support area.
Bitcoin Price Analysis
After struggling on more than two occasions near $9,200, bitcoin price started a strong decline. BTC to USD broke multiple supports near the $8,850 and $8,650 levels to start the current downtrend.
Looking at the 2-hours chart, bitcoin even broke a crucial contracting triangle support at $8.940. The decline was such that the price settled below the $8,000 pivot level and the 50 simple moving average (2-hours, purple).
Finally, a swing low is formed near the $7,686 level and the price is currently correcting higher. An initial resistance is near the $8,000 level. The 23.6% Fib retracement level of the recent slide from $9,220 to $7,686 is near the $8,048 level to prevent an upward move.
If there is an upside break above $8,000 and $8,050, the price could start a decent recovery. The next key resistance is near the $8,420 level. Besides, the 50% Fib retracement level of the recent slide from $9,220 to $7,686 is also near the $8,453 level to act as a strong resistance.
Therefore, an upside correction could face a major barrier near the $8,420 and $8,455 levels. Conversely, bitcoin price might fail to recover above the $8,000 and $8,050 levels.
In the mentioned bearish case, there is a risk of more losses below the $7,700 level and the $7,686 swing low. The next major support is seen near $7,520, below which the price could slide towards $7,220.
Overall, bitcoin price is declining and it remains at a risk of more losses below $7,686 unless it jumps above $8,050.