Key Points

Bitcoin price declined to a fresh weekly low at $6,834 and later recovered against the US Dollar.

There is a key connecting bearish trend line formed with resistance near $6,960 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair is currently trading with a positive angle and it could recover above $7,000 and $7,050.

Bitcoin price is under pressure below $7,120 against the US Dollar. However, BTC/USD may perhaps correct higher in the short term towards $7,050 and $7,100.

Bitcoin Price Analysis

After a correction above the $7,120 level, bitcoin price a strong resistance near $7,160 against the US Dollar. The BTC/USD pair started a downward move and broke the $7,050 and $7,000 support levels. The decline was such that the price even broke the $6,884 low. A new weekly low was formed at $6,834 before buyers appeared. The price recovered above $6,900 and the 23.6% Fib retracement level of the last decline from the $7,163 high to $6,834 low.

At the moment, the price is attempting to clear the $6,960 and $7,000 resistances. There is also a key connecting bearish trend line formed with resistance near $6,960 on the hourly chart of the BTC/USD pair. Should there be a close above the $7,000 resistance, the price may test the $7,080 level. It represents the 76.4% Fib retracement level of the last decline from the $7,163 high to $6,834 low. Above this, a crucial resistance awaits near $7,120 and the 100 hourly simple moving average. A successful close above $7,120 may well open the doors for more upsides in the near term.

Looking at the chart, BTC price is trading in a bearish zone, but short-term recoveries are possible above $7,000. On the downside, a break below $6,850 might clear the path for a push towards $6,500.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.

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

Major Support Level – $6,850

Major Resistance Level – $7,120