Key Points

Bitcoin price traded to a new low at $7,426 and is currently recovering against the US Dollar.

There is a crucial connecting trend line formed with support at $7,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair may perhaps move higher towards the $7,850 resistance and the 100 hourly SMA.

Bitcoin price is rebounding from the $7,426 low against the US Dollar. BTC/USD is likely to correct further higher towards the $7,850 resistance in the near term.

Bitcoin Price Analysis

Yesterday, we saw a major bearish move below $7,850 in bitcoin price against the US Dollar. The BTC/USD pair traded as low as $7,462 and later corrected higher. However, upsides were capped by the $7,600 level and the price declined once again. A new low was formed at $7,426 where the price formed a decent support for an upward recovery above $7,500.

More importantly, there is a crucial connecting trend line formed with support at $7,350 on the hourly chart of the BTC/USD pair. The pair recovered and moved above a bearish trend line with resistance at $7,580. Moreover, the price broke the 23.6% Fib retracement level of the last drop from the $8,200 swing high to $7,426 low. It seems like the price may perhaps recover further in three waves towards the $7,850 resistance. However, upsides could be capped by the 50% Fib retracement level of the last drop from the $8,200 swing high to $7,426 low.

Looking at the chart, the price is likely to face an important resistance near $7,850 and the 100 hourly SMA. There is also a connecting bearish trend line in place with resistance at $7,840. Overall, bitcoin price may possibly rise above $7,700, but it could face a strong resistance near $7,850.

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 now well above the 50 level.

Major Support Level – $7,500

Major Resistance Level – $7,850