Bitcoin Price Analysis: Why $7,200 still beckons?

  • Bitcoin recovery fails to break $7,500 psychological resistance.
  • The slide below the trendline support opens the Pandora box as $7,200 beckons.

Bitcoin impressively rose from the level slightly above $7,000, stepping past the key resistance at $7,400. The bullish price action on Thursday tested $7,500 psychological level but reversed the trend on hitting a high around $7,495.

The retreat following the failure to break past $7,500 has seen the price slide under $7,400. The ascending trendline support has also given in and Bitcoin is dancing at $7,359. The price is trading above the Simple Moving Averages. In other words, the 50 SMA on the 1-hour chart and the 100 SMA are in line to offer support in the event declines push harder.

The Relative Strength Index corrected towards the overbought but formed a high at 65. If it extends the movement under 50 and towards the oversold, there is a high chance Bitcoin will explore the levels above the crucial $7,200 support.

Meanwhile, the bulls still have a say as long as the double-cross of the 50 SMA above the 100 SMA continues. Also, reclaiming the trendline support could place Bitcoin in a trajectory aiming for $7,400 and $7,500, respectively.

BTC/USD 1-hour chart