Bitcoin Price (BTC) Weekly Target of $7.5K Still In Sight

• Bitcoin price extended its decline and broke the key $8,000 support area against the US Dollar.
• The price is likely to test the main weekly bearish target of $7,500 in the coming sessions.
• There was a bearish break below a contracting triangle with support near $8,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The price is currently trading near $8,000 and it is likely to extend its decline towards $7,500.

Bitcoin price is extending its decline below $8,000 against the US Dollar. BTC could soon test the bearish target of $7,500 as discussed in one of the recent analyses.

Bitcoin Price Analysis

After a short term correction, bitcoin struggled to break the $8,750 resistance area against the US Dollar. As a result, the price started consolidating losses below $8,500 and the 100 hourly simple moving average. Finally, there was a downside break below the $8,350 and $8,200 support levels. It seems like the bulls failed to protect losses below the $8,200 support level.

Moreover, there was a bearish break below a contracting triangle with support near $8,350 on the hourly chart of the BTC/USD pair. The pair even broke the key $8,000 support and traded to a new monthly low at $7,736. Recently, there was an upside correction above the $7,850 level. The price traded above the 23.6% Fib retracement level of the recent decline from the $8,646 high to $7,736 low.

However, the upward move is facing resistance near the $8,200 level (the previous support). Additionally, the 50% Fib retracement level of the recent decline from the $8,646 high to $7,736 low is capping upsides. There is also a connecting bearish trend line forming with resistance near $8,040 on the same chart. Therefore, an upside break above $8,050 and $8,200 is needed for a decent recovery.

If the price fails to correct above $8,200, it could continue to move down. An immediate support is near the $7,800 level. Any further losses is likely to open the doors for a sharp decline towards the $7,500 support area in the near term. If the bulls fail to protect $7,500, the price could tumble towards the $7,000 support.

Looking at the chart, bitcoin is clearly under pressure below $8,200 and $8,350. Therefore, there are high possibilities of more downsides towards $7,500 or even $7,200. Once the current decline is over, the price might correct above $8,500 in the coming days.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bearish zone.

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

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

Major Resistance Levels – $8,200, $8,350 and $8,500.

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