Bitcoin price failed near $8,500 recently and declined against the US Dollar. BTC/USD is declining and it seems like it was rejected from a major technical level on the daily chart.
- Bitcoin is still placed well above the $7,000 support and the $6,750 pivot level.
- BTC/USD failed near a crucial bearish trend line and technical resistance near $8,400-8,500 on the daily chart.
- The price is under pressure and it may perhaps trade towards $7,000 in the near term.
Bitcoin price analysis
In July 2018, bitcoin price started an upward move from the $5,744 swing low. BTC/USD gained bullish momentum and broke many barriers such as $5,950, $6,200, $6,750 and $7,000.
The daily chart indicates that the price even broke the $8,000 resistance and the 50% Fibonacci retracement level of the last decline from the $10,005 high to $5,744 low.
More importantly, the price even broke the 100-day SMA near the $7,600 level. It rallied towards the $8,500 level where sellers appeared. Furthermore, the upside move faced a strong resistance near $8,450-8,500.
It seems like a connecting bearish trend line with current resistance at $8,400 on the daily chart acted as a solid barrier. Additionally, the 61.8% Fibonacci retracement level of the last decline from the $10,005 high to $5,744 low also acted as a resistance.
BTC price was rejected and the price moved down below the $8,200 and $8,000 levels. It is currently trading well below the $7,600 level and the 100-day SMA. On the downside, there is a solid support waiting around the $7,000 level, which is a crucial pivot level.
Below $7,000, the price could test the next important support at $6,750. As long as the price is above $7,000, it could make another attempt to break the trend line.
In the medium term, bitcoin price has to settle above the trend line, $8,400, and the 100-day SMA to gain bullish momentum. Above $8,400, the price may well target the $9,000 and $9,500 levels.
The important supports on the downside awaits near $7,180, $7,000 and $6,750. Below this last, BTC/USD will most likely move back in a bearish zone.