Bitcoin Starts 2020 With Bearish Bias But Downsides Remain Limited

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Bitcoin price is struggling to hold key supports against the US Dollar. BTC remains at a risk of more downsides towards $7,000 and $6,880 before a decent upward move.

Bitcoin Price Analysis

In the past few sessions, there was a steady decline in bitcoin price below the $7,320 support against the US Dollar. Moreover, BTC settled below $7,320 and the 100 hourly simple moving average.

The recent decline was such that the price even traded below the $7,200 and $7,150 support levels. A new weekly low is formed near $7,109 and the price is currently correcting higher above $7,150.

Besides, there was a break above a major bearish trend line with resistance near $7,185 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading near the 23.6% Fib retracement level of the downward move from the $7,531 high to $7,109 low.

It seems like there is a short term ascending channel forming with resistance near $7,250. The first key resistance is near the $7,275 level and the 100 hourly simple moving average.

The next major resistance is near the $7,320 level. Additionally, the 50% Fib retracement level of the downward move from the $7,531 high to $7,109 low is near the $7,320 resistance area.

A successful close above the $7,320 resistance might set the pace for a strong upward move. In the mentioned case, the price might continue to rise towards the $7,400 and $7,500 resistance levels.

On the other hand, the price might fail to continue higher above $7,275 and $7,320. In this bearish case, the price might extend its decline below $7,150. An immediate support is near the $7,100 area, below which there is a risk of a breakdown below $7,000.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is showing bearish signs below the $7,320 level and the 100 hourly SMA. Therefore, there are chances of more losses this week unless the bulls push the price above $7,320.

Technical indicators:

Hourly MACD – The MACD is currently moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.

Major Support Levels – $7,100 followed by $7,000.

Major Resistance Levels – $7,275, $7,320 and $7,500.

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