Bitcoin price is holding the key $7,670 support area and consolidating losses. BTC to USD is likely to start a fresh rally if it clears the $7,950 and $8,000 resistance levels.
Key Takeaways: BTC/USD
- Bitcoin price is currently trading above the $7,670 and $7,590 support levels against the US Dollar.
- BTC/USD is following a declining channel with resistance near $7,860 on the 2-hours chart (data feed from Bitstamp).
- Ethereum is also rising and it could rally if there is a clear break above the $140 resistance.
Bitcoin Price Analysis
After trading to a new yearly high at $8,462, bitcoin price corrected lower. BTC to USD traded below the $8,160 and $8,000 support levels to enter a short term bearish zone.
Looking at the 2-hours chart, bitcoin even settled below the $8,000 mark and the 50 simple moving average (2-hours, purple). However, the decline was protected by the key $7,670 support area.
A low is formed near $7,671 and the price is currently consolidating losses. It is testing the 23.6% Fib retracement level of the recent decline from $8,462 to $7,671.
Moreover, bitcoin price seems to be following a declining channel with resistance near $7,860 on the 2-hours chart. If there is a clear break above the channel resistance, the price could test the $7,950 resistance.
A clear break above the $7,650 resistance, the 50 simple moving average (2-hours, purple), and the $8,000 level is needed for a fresh upward move. Besides, the 50% Fib retracement level of the recent decline from $8,462 to $7,671 is near the $8,060 area.
Therefore, a successful close above the $8,060 area could start a strong upward move towards the $8,160 and $8,320 levels. Any further gains might lead the price towards the $8,400 level.
Conversely, bitcoin price might fail to climb above the $7,950 and $8,000 resistance levels. In the mentioned case, there is a risk of more downsides below the $7,670 and $7,590 support levels. The next key support is seen near the $7,255 level, where the bulls are likely to appear.