Bitcoin price analysis: BTC/USD prime for gains: $7,300 support firmly holds ground

It has been a sorrowful week for Bitcoin investors. Just when people were getting used to Bitcoin trading above $8,000, the price dipped again breaking several anchor areas at $8,000, $7,800 and $7,500. Moreover, the selling pressure overwhelmed the buyers yesterday and the bears broke the trendline support at $7,504.02.

Bitcoin price tanked even further on Friday after starting off the day’s trading at $7,535.04. It has traded lows of $7,282.11 but has recovered above $7,300 and is now testing the resistance at $7,400. The 100 simple moving average on the hourly chart is going to prevent movement at $7,456.45 (moving average resistance). The key resistance for BTC/USD is $7,600.15 while $7,800 is the next critical resistance in the medium term. In the long run, the ultimate resistance lies at $8,196.31.

Technical indicators show that the buyers are regaining control. Similarly, the stochastic has come out of the oversold region and advancing upwards. Although the MACD momentum indicator is on the negative side, it is beginning to change direction upwards. On the downside, the immediate support at $7,300 is strong enough to hold the price in the next trading session. However, if it is broken, the support at $7,280 will come in handy to prevent a dip towards $7,200.

BTC/USD 1-hour chart