Bitcoin price corrected higher, but it faced hurdles near $8,120 and $8,140 against the US Dollar.

The price is declining again and it could gain momentum below the $8,000 support.

There is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price is likely to remain in a bearish zone unless the bulls push it above $8,120 and $8,240.

Bitcoin price is struggling to rebound above $8,100 against the US Dollar. Therefore, BTC is likely to resume its decline below $8,000 and $7,900 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension in bitcoin below the $8,000 support area against the US Dollar. BTC price traded to a new monthly low at $7,915 and settled below the 100 hourly simple moving average. Recently, there was an upside correction above the $8,000 level. Moreover, the price recovered above the $8,020 level, plus the 23.6% Fib retracement level of the last decline from the $8,386 high to $7,915 low.

However, the upward move was capped by the $8,100 and $8,120 resistance levels. Besides, the price failed to test the 50% Fib retracement level of the last decline from the $8,386 high to $7,915 low. As a result, there was a fresh decline below $8,020. The price is now accelerating declines below the $8,000 level. It even broke the last swing low at $7,915 and traded to a new monthly low near $7,850.

It seems like there was a strong bearish reaction below $8,000. The next key support is near the $7,800 level. If there are more downsides, bitcoin price could accelerate losses towards the $7,600 and $7,500 levels in the near term. An intermediate support is near the $7,720 level.

On the upside, the $8,000 and $8,020 levels are likely to act as hurdles for the bulls. The main resistance is near the $8,120 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair.

Looking at the chart, bitcoin is clearly under a lot of pressure below $8,120 and $8,000. As long as there is no close above $8,120 and $8,240, there are chances of more downsides. The main target for the bearish in the coming sessions could be near the $7,600 and $7,500 levels.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining sharply and is well below the 40 level.

Major Support Levels – $7,800 followed by $7,500.

Major Resistance Levels – $8,020, $8,120 and $8,150.