Bitcoin price is trading with a positive bias above the $7,380 and $7,420 support levels. BTC to USD is likely to climb above the $7,640 and $7,780 resistance levels.
Key Takeaways: BTC/USD
- Bitcoin price is showing a lot of positive signs above the $7,420 and $7,380 supports against the US Dollar.
- BTC/USD is trading above $7,440 and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is gaining momentum, but it is still struggling to break the $151.80 resistance level.
Bitcoin Price Analysis
After a sharp decline, bitcoin price started a slow and steady rise above the $7,300 level. BTC to USD even broke a couple of important resistance levels near the $7,380 level to move into a positive zone.
Looking at the 2-hours chart, bitcoin even settled above the $7,420 level and the 50 simple moving average (2-hours, purple). Finally, the price climbed above the $7,600 level, but it struggled to clear the $7,640 resistance area.
A swing high was formed near $7,642 before the price started a downside correction. There was a break below the 23.6% Fib retracement level of the upward move from $7,105 to $7,642.
However, the $7,420 support area and the 50 simple moving average (2-hours, purple) seem to holding the ground. Moreover, bitcoin price is trading above $7,440 and a bullish trend line on the 2-hours chart.
If there is a downside break below the trend line and $7,420, the price could start an extended downside correction. The next support is near the $7,380 level.
Besides, the 50% Fib retracement level of the upward move from $7,105 to $7,642. Any additional losses may perhaps push the price below the $7,300 support area in the near term.
On the other hand, the price might continue to rise above the $7,500 and $7,540 levels. The first key resistance is near the $7,640 level, above which there are high chances of a decent increase in the coming sessions.
In the mentioned case, bitcoin price could even rise towards the $7,780 resistance area. Overall, there could be more gains above $7,640 in the near term.