- Bitcoin price is diving and it recently broke the $8,000 support area against the US Dollar.
- The price is under a lot of pressure and recently traded to a new monthly low at $7,828.
- Morning’s bearish flag pattern was breached with support near $8,080 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The next key target for the bears could be $7,400 (as discussed in the recent medium term outlook).
Bitcoin price is gaining bearish momentum below $8,000 against the US Dollar. More importantly, there is now very less chances of BTC recovering above $8,250 before testing $7,400.
Bitcoin Price Analysis
In morning, we discussed the chances of a breakdown in bitcoin below the $8,000 support area against the US Dollar. BTC made an attempt correct above the $8,150 resistance, but it failed to gain traction and remained well below the 100 hourly simple moving average.
As a result, there was another bearish break below the $8,050 support. Moreover, morning’s bearish flag pattern was breached with support near $8,080 on the hourly chart of the BTC/USD pair.
Finally, the price declined below the $8,000 support and the last swing low. A new monthly low was formed near $7,828 and the price is currently correcting higher.
An immediate resistance for bitcoin is near the $7,920 level. It represents the 23.6% Fib retracement level of the recent decline from the $8,221 high to $7,828 low. The first key resistance on the upside is near the $8,000 level (the recent breakdown support).
Additionally, the 50% Fib retracement level of the recent decline from the $8,221 high to $7,828 low is near the $8,020 level to prevent gains. Lastly, there is a new connecting bearish trend line forming with resistance near $8,020 on the same chart.
Therefore, the price is likely to face a strong resistance if it corrects higher towards $8,000 and $8,020. A convincing break above the $8,020 resistance may perhaps lift the price towards the $8,200 resistance.
On the downside, it seems like the gates for a test of the $7,400 support is now open (the next bearish target as discussed in the recent medium term outlook).
Bitcoin PriceLooking at the , bitcoin price is clearly gaining bearish momentum below the $8,000 support area. There are high chances of additional losses towards the $7,400 support unless the price rallies above $8,020 and $8,200 in the near term.
Technical indicators:
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering from the oversold levels.
Major Support Levels – $7,640 followed by $7,400.
Major Resistance Levels – $8,000, $8,020 and $8,200.