Bitcoin Price Analysis: BTC/USD at Risk of Fresh Downsides

Bitcoin price corrected higher above the $7,050 level against the US Dollar. BTC/USD failed to move past $7,150 and is currently under bearish pressure.

Key takeaways:

• Bitcoin’s recovery above the $7,100 level failed near the $7,150 resistance. 
• BTC/USD is also facing a crucial bearish trend line with resistance near $7,200 on the 2-hours chart.
• BTC price remains at a risk of a downside break below the $6,881 low in the near term.

Bitcoin price analysis

During the past two days, the bitcoin price attempted a recovery after trading as low as $6,881. BTC/USD corrected above the $7,000 and $7,100 resistance levels, but it struggled to clear the $7,150 level.

The 2-hours chart of BTC/USD indicates that the price spiked above the 23.6% Fibonacci retracement level of the last downward move from the $7,700 swing high to $6,881 low.

However, buyers failed to keep the price above the $7,100 level, resulting in a bearish reaction. The price declined and broke the $7,050 and $7,000 support levels and is currently trading near $6,970.

It seems like there is an expanding triangle pattern formed with resistance near $7,210 and support at $6,850. Should the price fail to hold the $6,881 low and the $6,900 support zone, it could test the $6,850 level.

Below $6,850, the next significant support awaits near the $6,650 level. On the flip side, if the price recovers above $7,100 once again, it is likely to face sellers near the $7,150 resistance.

More importantly, there is a crucial bearish trend line with resistance near $7,200 on the same chart. Above the trend line resistance, the next important barrier is the 50% Fibonacci retracement level of the last downward move from the $7,700 swing high to $6,881 low at $7,293.

Therefore, bitcoin buyers face many challenges on the upside near the $7,150, $7,200 and $7,290 levels in the near term. A successful close above $7,290 will most likely clear the path for a new bullish trend towards $8,000.

To sum up, there are bearish signs on the 2-hours chart of BTC/USD, indicating that the bitcoin price remains at a risk of more declines below $6,900.