Can BTC Hold the $7K Line?

Key Points

Major Support Level – $7,200

Major Resistance Level – $7,600

The price of bitcoin has been in a bearish zone above the $7,000 support against the US Dollar.
There is a key declining channel that has been forming but the volume looks like it is decreasing. The bulls seem to have control at 7000 level.

If bitcoin can't remain above the $7,200 and $7,000 support levels there could be a major downside break.
Bitcoin price is trading well below the $7,600 pivot level against the US Dollar.

This past week, there were heavy losses from the $8,500 swing high in bitcoin price against the US Dollar. The price declined sharply and broke two important support levels at $8,150 and $7,900. The decline was such that the price even broke the $7,600 pivot level. It traded close to the $7,000 level and found support near $7,200. A low was formed at $7,220 before the price started consolidating in a range.

Bitcoin price went above the 23.6% Fib retracement level of the last decline from the $8,606 high to $7,220 low by couple points. However, buyers failed to gain momentum above the $7,600 pivot level. Therefore, the price is in a downtrend below $7,600. More importantly, there is a key declining channel forming with resistance at $7,600 on the 4-hours chart of the BTC/USD pair. A break above the channel resistance and $7,650 is needed for an upside push. Above $7,650, the next hurdle for buyers sits around the $7,950 and $8,000 levels.

Price Analysis of Bitcoin

The chart above shows that price is struggling to recover above $7,600. On the downside, there is a crucial support at $7,200. A break below the stated support at $7,200 could open the doors for more declines below the $7,000 level.

What are Technical Indicators Showing:

4-hours MACD – The MACD for BTC is struggling to gain pace in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is currently just above the 30 level.