Bitcoin is showing a few bearish signs below the $7,400 resistance area against the US Dollar. BTC price is currently declining and it could extend its weakness towards $7,100 or $6,800.<\/p>\n
In the past two days, bitcoin bulls made more than two attempts to gain strength above the $7,400 and $7,500 levels against the US Dollar, but they failed. BTC price seems to be forming a short term topping pattern near the $7,440 level.<\/p>\n
The last swing high was below $7,440 and the price is now trading below the 23.6% Fib retracement level of the upward move from the $7,080 low to $7,429 swing high.<\/p>\n
More importantly, there was a break below a crucial bullish trend line with support near $7,300 on the hourly chart of the BTC\/USD pair. Bitcoin price is now trading below the $7,280 level.<\/p>\n
Bitcoin Price<\/p>\n
An immediate support is near the $7,255 level. It is close to the 50% Fib retracement level of the upward move from the $7,080 low to $7,429 swing high. If there is a clear break below the $7,255 level, the bears are likely to take control in the short term.<\/p>\n
The next major support is near the $7,150 level and the 100 hourly simple moving average, below which the bulls are likely to protect the $7,100 support area.<\/p>\n
If the bulls fail to hold the $7,100 support area, the price is likely to continue lower below $7,000. The next stop for the bears may perhaps be $6,800.<\/p>\n
On the upside, bitcoin is facing a strong resistance near the $7,400 and $7,500 levels. Therefore, the bulls need to gain momentum above the $7,500 zone.<\/p>\n
If there is a successful break and close above $7,500, the price is likely to continue higher above $7,600. The next major resistance is near $7,800, above which the bulls could aim a test of $8,000.<\/p>\n
Technical indicators:<\/p>\n
Hourly MACD The MACD is currently losing momentum in the bullish zone.<\/p>\n
Hourly RSI (Relative Strength Index) The RSI for BTC\/USD is now below the 50 level.<\/p>\n
Major Support Levels $7,150 followed by $7,100.<\/p>\n
Major Resistance Levels $7,400, $7,500 and $7,800.<\/p>\n
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