- The price of bitcoin has been trading at a new low at $ 7,426 and is currently recovering against the US dollar.
- There is a crucial linking trend line formed with support for $ 7,350 on the hourly chart of the BTC / USD pair (data feed from Kraken).
- The pair could perhaps move higher towards the $ 7.850 resistance and the 100-hour SMA.
The bitcoin price is rebounding from $ 7.426 low against the US dollar. BTC / USD is likely to further correct towards the resistance of $ 7.850 in the short term.
Bitcoin price analysis
Yesterday, we saw a big downtrend move of less than $ 7,850 in the price of bitcoin compared to the US dollar. The BTC / USD pair was trading at $ 7,462 and subsequently adjusted higher. However, the positives were limited by the $ 7,600 level and the price declined again. A new low amounted to $ 7,426, where the price formed a decent support for an uptrend higher than $ 7,500.
More importantly, there is a crucial linking trend line formed with support for $ 7,350 on the hourly chart of the BTC / USD pair. The pair has recovered and moved above a bearish trend line with resistance at $ 7.580. In addition, the price broke the fiber retracement level of 23.6% from the last drop, from $ 8,200 high to $ 7,426 low. It seems that the price may perhaps recover further in three waves towards the resistance of $ 7.850. However, increases could be limited by the 50% fiber retracement level of the last drop from $ 8,200 to $ 7,426 low.
Looking at the chart, the price is likely to face significant resistance close to $ 7.850 and the 100-hour SMA. There is also a bearish trend line in place with resistance at $ 7.840. Overall, the price of bitcoin could rise above $ 7,700, but could face strong resistance around $ 7,850.
Looking at the technical indicators:
MACD timetable – The MACD for BTC / USD is positioned well in the bullish zone.
RSI Time (Relative Strength Index) – The RSI is now well above the 50 level.
Major Support Level – $ 7,500
Main resistance level – $ 7.850