Bitcoin price is currently consolidating above the $7,420 support zone. BTC/USD is likely to continue higher above the $7,600 and $7,650 levels in the near-term.
In the past two days, we saw a decent rise in the bitcoin price above the $7,500 resistance. BTC/USD even broke the $7,700 level and traded at a new weekly high of $7,773.
Looking at the 1-hour chart, the price started a correction from $7,773, but it’s still well above the 25 SMA (1-hour, orange). There was a break below the 23.6% Fib retracement level of the upward move from the $7,040 swing low to the $7,773 high.
However, the downside correction found support near the $7,420 and $7,400 levels. The bitcoin price is also trading nicely above a major bullish trend line with support near $7,420 on the same chart.
Moreover, the 50% Fib retracement level of the upward move from the $7,040 swing low to the $7,773 high is near the $7,411 level and is acting as strong support. If the price fails to stay above the $7,400 support level, there are chances of further losses.
The next key support is near $7,320, below which the bears are eyeing the key $7,200 support area. Conversely, the price might start a fresh rise above the $7,600 resistance area.
A clear break and close above the $7,600 level will open the door for a rise towards the $7,700 and $7,720 levels. The main resistance for Bitcoin is near the $7,780 and $7,800 levels, above which the bulls are likely to test the $8,000 resistance area.