Bitcoin price declined below the key $7,095 and $6,920 support levels. BTC/USD is correcting higher, but the previous support near $7,095 is likely to stop upsides.
Yesterday, we saw the start of a major decline in the bitcoin price below the $7,250 support zone. BTC/USD broke the key $7,095 support to move into a bearish zone.
Looking at the 1-hour chart, the price even broke the $6,920 support zone and settled below the 25 simple moving average (1-hour, orange). It traded as low as $6,754 and it is currently correcting higher.
The market data is provided by TradingView, Bitfinex.
There was a break above the $6,850 level, plus the 23.6% Fib retracement level of the recent decline from the $7,361 high to the $6,754 low.
The price is trading above the 25 simple moving average (1-hour, orange), but it is facing strong resistance near the $6,950 level. It seems like the bitcoin price is testing the $6,950 resistance and the connecting bearish trend line on the same chart.
If there is an upside break above $6,950, the price could recover further above $7,000. The next major hurdle is near the $7,060 level since it is close to the 50% Fib retracement level of the recent decline from the $7,361 high to the $6,754 low.
The main resistance is near the $7,095 level (the recent breakdown zone), where the bears are likely to take a stand. If there is a clear break above $7,095, the price is likely to move back into a positive zone.
Conversely, Bitcoin might fail to continue higher above $7,060 or $7,095. In that case, there is a risk of a fresh decline towards the $6,750 and $6,620 levels.