Bitcoin Price Watch: Can BTC/USD Hold This Support?

Key Points

• Bitcoin price surged higher and traded close to the $7,800 resistance against the US Dollar.
• There is a key connecting bullish trend line forming with support at $7,540 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must stay above the $7,500 support area to stay in a positive zone in the near term.

Bitcoin price made a nice upside move above $7,700 against the US Dollar. BTC/USD is currently correcting lower towards a major support at $7,500.

Bitcoin Price Analysis

The past few sessions were positive as bitcoin price settled above the $7,500 barrier against the US Dollar. The BTC/USD pair traded above the $7,550 and $7,600 resistance levels. It traded close to the $7,800 level and posted a high at $7,779. Later, the price started a downside correction and moved below the $7,700 level. It broke the 23.6% Fib retracement level of the last wave from the $7,354 low to $7,779 high.

However, the price is now approaching a crucial support near $7,500. The stated level was a resistance earlier and it may now stop declines below $7,500. There is also a key connecting bullish trend line forming with support at $7,540 on the hourly chart of the BTC/USD pair. Moreover, the 50% Fib retracement level of the last wave from the $7,354 low to $7,779 high is at $7,560. Lastly, the 100 hourly simple moving average is positioned near $7,600 to act as a pivot area.

Looking at the chart, the price is currently trading near an important support above $7,500. As long as the price stays above $7,500, it could bounce back and retest $7,800. On the flip side, a break below $7,500 may perhaps accelerate losses towards the $7,300 level.

Looking at the technical indicators:              

Hourly MACD – The MACD for BTC/USD has moved back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI has reached the oversold levels near 30.

Major Support Level – $7,500

Major Resistance Level – $7,800