Bitcoin Price Watch: BTC/USD’s Support Turned Resistance at $7,260

Key Points

• Bitcoin price recovered and moved above the $7,000 handle against the US Dollar.
• There is a crucial bearish trend line in place with resistance at $7,260 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair has to move past the $7,260 hurdle and the 100 hourly simple moving average for more gains.

Bitcoin price is slowly recovering above $7,000 against the US Dollar. BTC/USD is likely to struggle near a significant resistance at $7,260.

Bitcoin Price Analysis

After heavy declines, bitcoin price found bids near the $6,880 level against the US Dollar. The BTC/USD pair traded as low as $6,883 and later it started an upside correction. The price moved above the 23.6% Fib retracement level of the last slide from the 7,532 high to $6,883 low. More importantly, there was a break above the $7,000 handle, which opened the doors for more recoveries.

At the moment, the price is struggling to clear the $7,130 level and is consolidating in a range. Above $7,130, there is a significant resistance formed near $7,260. There is also a crucial bearish trend line in place with resistance at $7,260 on the hourly chart of the BTC/USD pair. An intermediate resistance is the 50% Fib retracement level of the last slide from the 7,532 high to $6,883 low at $7,207. Additionally, the same trend line is positioned with the 100 hourly SMA at $7,270. Therefore, there are many resistances aligned between $7,210 and $7,270.

Looking at the chart, BTC price may perhaps move further above $7,130. However, it won’t be easy for bitcoin buyers to clear the $7,260 barrier. On the downside, an initial support is at $7,000. Below this, the price may possibly move back towards the $6,800 level.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is placed nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is positioned above the 50 level.

Major Support Level – $7,000

Major Resistance Level – $7,260