Categories: Price Analysis

Bitcoin Price Analysis: BTC/USD Nosedives Below Key Support

Bitcoin price declined sharply after failing near $7,410 against the US Dollar. BTC/USD dropped more than $500 and broke a few key supports near $7,380…

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Bitcoin price declined sharply after failing near $7,410 against the US Dollar. BTC/USD dropped more than $500 and broke a few key supports near $7,380 and $7,100.

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Important points

  • Bitcoin faced a strong resistance recently near the $7,400-7,410 area and declined sharply.
  • BTC/USD broke an important bullish trend line with support at $7,380 on the 2-hours chart.
  • BTC price also broke the $7,100 support area and is now approaching the $6,860 support.

Bitcoin price analysis

Bitcoin price was in a decent uptrend as it traded above the $7,280 and $7,320 resistance levels against the US Dollar. BTC/USD even traded a few points above the $7,400 level before sellers appeared.

The 2-hours chart of BTC price indicates that the price topped near the $7,409 level and started a major downside move. There was a clear bullish trend exhaustion around $7,400, resulting in a bearish reaction.

Chart sourced by TradingView, Binance

During the decline, the pair broke an important bullish trend line with support at $7,380 on the same chart. It opened the doors for sellers to take control, resulting in a push below the key support at $7,100.

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The price even broke the 50% Fibonacci retracement level of the last upside move from the $6,787 low to $7,409 high. More importantly, the price is now trading below the $7,000 level and the 100 simple moving average (2-hours).

If sellers succeed in pushing the price below $6,930 and the 76.4% Fibonacci retracement level of the last upside move from the $6,787 low to $7,409 high, there could be more losses.

On the downside, the next major support is near $6,860, which was a resistance earlier. Below this, the price may perhaps trade towards the $6,787 low in the near term. Should buyers fail to defend the $6,787 low, the next stop for BTC/USD could be near the $6,640 level (the 1.236 Fib extension level of the last upside move).

Overall, the recent drop indicates a short-term change in trend to bearish below $7,100. To bounce back, bitcoin price has to move back above the $7,100 level and the 100 simple moving average (2-hours).

Also, read: Bitcoin’s Only Way is Up: 4 News Talking a Big Game for Intensifying Crypto Adoption

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Latika Mehrotra

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 latika@coingape.com

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