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

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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.

bitcoin
Chart sourced by TradingView, Binance

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.

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Bitcoin Price Analysis: BTC/USD at Risk of Fresh Downsides
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Bitcoin Price Analysis: BTC/USD at Risk of Fresh Downsides
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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.
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COINGAPE
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Latika Mehrotra 57 Articles

Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

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