Bitcoin price failed to stay above the $7,100 support and declined below $6,940. BTC/USD is now showing signs of weakness and it could slide further towards $6,700.
In the past three sessions, there was an increase in the selling pressure below $7,150. As a result, the bitcoin price declined below the $7,100 and $7,020 levels to move into a bearish zone.
Looking at the 1-hour chart, the price declined sharply after an ascending channel with support near $7,125. More importantly, there was a break below the key $6,940 support zone and the price settled below the 25 SMA (1-hour, orange).
It traded as low as $6,762 and it’s currently trading in a range. The bitcoin price is trading above the 23.6% Fib retracement level of the latest drop from the $7,236 high to the $6,762 low.
On the upside, the recent key support at $6,940 is likely to act as a strong resistance and selling zone. Above the $6,940 zone, the 25 SMA (1-hour, orange) is near $6,960.
The next major resistance is near the $7,000 level since it is close to the 50% Fib retracement level of the latest drop from the $7,236 high to the $6,762 low.
Therefore, Bitcoin must recover above the $6,940 and $7,000 resistance levels to start a fresh upward move in the near-term. The next major resistance above $7,000 is near the $7,125 level.
Conversely, the bitcoin price might fail to recover above $6,940 or $7,000. If the bears remain in action, there are chances of more losses below the $6,762 low. The next key support is near the $6,700 level, below which bitcoin could dive towards $6,500.