Bitcoin Price Weekly Analysis – BTC/USD to Retest $6,000
Bitcoin price is under heavy selling pressure as it tumbled below the $8,000 support against the US Dollar.
There is a crucial contracting triangle forming with support at $7,400 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair may extend the current decline and it could even break the $7,400 and $7,000 support levels.
Bitcoin price is poised to extend declines below $7,000 against the US Dollar. BTC/USD’s correction towards the $8,000 and $8,500 levels are likely to be capped.
Bitcoin Price Bearish Trend
There was hardly any relief for bitcoin price as it failed to hold a major support at $8,400 against the US Dollar. The price declined and broke the $8,000 and $7,800 support levels. Earlier, there was a correction initiated from the $8,397 swing low. BTC price corrected and moved towards the $9,800 level where it faced sellers and started a fresh decline.
It fell and broke the last swing low of $8,397, opening the doors for more losses. It even traded below the 1.236 Fib extension of the last upside wave from the $8,397 low to $9,888 high. These all are bearish signs, which suggest further downsides in the near term. It seems like the price may test or it could even break the 1.618 Fib extension of the last upside wave from the $8,397 low to $9,888 high. There is also a crucial contracting triangle forming with support at $7,400 on the 4-hours chart of the BTC/USD pair.
Sellers could gain further control if there is a break below $7,400. The next major support is at $7,000. However, in the mentioned case, the price may extend declines and bitcoin could test $6,000. On the upside, the $8,000 level is a key resistance, followed by $8,400.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is moving in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently reaching the 30 level.
Major Support Level – $7,400
Major Resistance Level – $8,400
Charts courtesy –Trading View