Bitcoin price is struggling to clear the $7,775 resistance area. BTC/USD is probably forming a short-term double top and it could correct lower towards the $7,400 support.
After a short-term downside correction, the bitcoin price found support near the $7,420 level. BTC/USD started a fresh increase above the $7,500 and $7,600 levels.
Looking at the 1-hour chart, the price even broke the $7,700 level and settled above the 25 SMA (1-hour, orange). However, the bulls seem to be facing strong selling interest near the $7,775 and $7,800 levels.
The price could form a short-term double top pattern near the $7,775 level if it fails to continue higher. It is currently trading below the 23.6% Fib retracement level of the upward move from the $7,420 low to the $7,768 high.
Initial support is near the $7,630 level and the 25 SMA (1-hour, orange). Besides, the bitcoin price is now following a rising channel with support near $7,595 on the same chart.
The channel support is close to the 50% Fib retracement level of the upward move from the $7,420 low to the $7,768 high. The next support is near the $7,560 level, below which the bulls are likely to lose control.
In that case, the price might continue to move down towards the $7,400 support level. Any further losses could put the main $7,300 support area at risk in the coming sessions.
Conversely, Bitcoin might remain above the $7,600 level and it could continue above the $7,775 and $7,780 levels. A successful follow-through above the $7,800 level is likely to push the price towards the $8,000 zone.