Bitcoin price failed to clear the $7,420 resistance, resulting in a sharp decline. BTC/USD broke the key $7,095 support area to move into a short-term bearish zone.
There was a sharp sell-off after the Bitcoin price failed to clear the $7,420 resistance area. BTC/USD declined below the $7,250 support level to start a fresh decline.
Looking at the 1-hour chart, the price traded below a few key supports near $7,150 and a crucial contracting triangle to move into a bearish zone. Besides, there was a close below $7,120 and the 25 simple moving average (1-hour, orange).
The market data is provided by TradingView, Bitfinex.
Finally, there was a break below the key $7,095 support area, opening the doors for a bearish wave. The price is now trading well below the 50% Fib retracement level of the upward move from the $6,690 low to the $7,454 high.
The current technical structure seems bearish and the Bitcoin price is now trading near the $6,920 support. The next support is at $6,870 since it’s close to the 76.4% Fib retracement level of the upward move from the $6,690 low to the $7,454 high.
Any further losses could open the doors for a retest of the $6,690 swing low. The next major support is near the $6,600 area.
If there is an upside correction, the recent breakdown of support at $7,095 is likely to act as a resistance for the bulls. To start a fresh rise, Bitcoin must climb back above $7,095 and then gain strength towards the $7,250 level. If not, BTC is likely to continue lower towards $6,690 and $6,600 in the coming sessions.