Bitcoin price followed a bearish path after it failed to surpass the $8,500 resistance against the US Dollar. BTC is now approaching a crucial support near $7,750 and $7,600.
- Bitcoin is trading near a significant buy zone at $7,600-$7,750 against the US Dollar.
- The bulls are likely to gain control if they are able to protect $7,600.
- There is a short term declining channel forming with resistance near $7,880 support near $7,930 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could either bounce sharply above $8,000 or tumble below $7,750 and $7,600.
Bitcoin Approaching Key Support
Recently, bitcoin bears took control and they were able to push the price below $8,000 against the US Dollar. Moreover, BTC settled below the $8,000 handle and the 100 hourly simple moving average.
The price is now trading below the 50% Fib retracement level of the last major rally from the $7,302 low to $8,460 high. During the decline, there was a break below a key bullish trend line with support near $8,000 on the hourly of the BTC/USD pair.
The last key support is near the $7,600 area (the previous breakout zone). Both $7,750 and $7,600 are important buy zones. Therefore, there are chances of a fresh rally above the $8,000 resistance.
An initial resistance is near the $7,900 level. There is also a short term declining channel forming with resistance near $7,880 support near $7,930 on the same chart. A successful break above the $7,900 and $8,000 resistance levels could set the pace for a decent rally. The next key resistances are near $8,180 and $8,300.