Bitcoin is declining and trading below the key $7,800 support against the US Dollar. BTC price could soon test the main $7,400-$7,500 support area where the bulls might take a stand.
- Bitcoin is extending losses and it may even slide below the $7,600 area against the US Dollar.
- The bulls are likely to take a strong stand near the $7,500 and $7,400 support levels.
- There is a major declining channel forming with support near $7,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of a massive drop if it fails to stay above the $7,400 support.
Bitcoin is Approaching Major Support
After testing the $7,600 area, bitcoin price corrected a few points against the US Dollar. BTC price traded above the $7,800 level, but it stayed well below the 100 hourly simple moving average.
It seems like the price fails to gain strength above the $8,000 level. A swing high is formed near $7,988 and the price is currently declining. There was a break below the $7,800 support level to start a fresh decline.On the downside, there are a few important supports near the $7,500 and $7,400 levels (as discussed in one of the previous analyses using the daily chart). If BTC fails to stay above the $7,400 support, there is a risk of a sharp decline towards the $7,000 level.