Bitcoin Price Analysis: BTC/USD Signaling Bearish Continuation


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Bitcoin Price Analysis: BTC/USD Signaling Bearish Continuation

Bitcoin price started a major bearish move from the $8,200 swing high against the US Dollar. BTC/USD traded below $7,640 and recoveries are likely to be capped by $7,800.

Key Takeaways:

  • Bitcoin buyers failed to push the price above a key barrier at $8,200-8,300.
  • BTC/USD declined sharply and broke a crucial declining channel with support at $7,640 on the 2-hours chart.
  • If the recent break is true, BTC price may decline further towards $7,400 and $7,250.

Bitcoin price analysis

This past week, bitcoin price attempted to break an important resistance near $8,200 and $8,300. However, BTC/USD failed to gain traction above $8,200, resulting in a downward move.

The 2-hours chart indicates that the price failed near a declining channel resistance at $8,200 and declined sharply. During the slide, it broke the $7,750 support to move into a bearish zone.

bitcoin
Chart sourced by TradingView, Binance

More importantly, there was a break below the declining channel support at $7,640. The price traded as low as $7,461 and it is currently correcting higher. However, the broken channel support at $7,640 is acting as a resistance and is preventing gains above $7,650.

The stated resistance coincides with the 23.6% Fib retracement level of the last dive from the $8,210 high to $7,461 low. Considering the fact that the $7,520/00 is a decent support (the previous pivot level), the price may perhaps attempt a larger upward correction.

Should there be an upside break above the $7,650 resistance, BTC price could test the 50% Fib retracement level of the last dive from the $8,210 high to $7,461 low at $7,836.

However, gains are likely to be limited above the $7,836 level unless there is a change in volumes and momentum. Above $7,836 level, the channel resistance and the 100 SMA (2-hours, green) are the next important barriers for buyers.

On the flip side, if the price extends its slide below the $7,461 low, the next stop for sellers could be the $7,400 level. Below this, bitcoin might tumble towards the $7,250 level.

In short, the recent break-in BTC/USD could intensify if the price trades below the $7,461 low. The squeeze momentum indicator suggests that the bearish momentum peaked and exhausted, which could result in an upward correction towards $7,700 or $7,750.

Summary
Bitcoin Price Analysis: BTC/USD Signaling Bearish Continuation
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Bitcoin Price Analysis: BTC/USD Signaling Bearish Continuation
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Bitcoin price started a major bearish move from the $8,200 swing high against the US Dollar. BTC/USD traded below $7,640 and recoveries are likely to be capped by $7,800.
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COINGAPE
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Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Author: 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 [email protected]

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Latika Mehrotra 71 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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