Bitcoin price analysis: Is this a reversal? Bulls treading on dangerous ground

Bitcoin price is sitting comfortably above $7,000 in spite of the drop below $7,300 after trading highs of $7,330.39. As covered in an earlier published analysis, the buyers have protected the support at $7,200. There has also been some minor progress during the intraday trading on Monday 3. Bitcoin opened the trading session at $7,292 but corrected lower towards $7,100 forming a low of $7,189.28.

The buyers entered with the price supported by the hourly 50-day simple moving average and the ascending trendline. BTC/USD has come close to $7,300 but is currently correcting lower towards $7,250.

Although the trend is bearish at the time of press, the stochastic is pointing upwards while the RSI is in the positive zone (54.14%). Bitcoin buyers must take the price above $7,300 and battle for recoil towards $7,400 in the short-term. This will prevent declines towards $7,000 and exponentially launch Bitcoin on another journey of breaking barriers heading to $8,000.

As mentioned, $7,250 is a weak support but the trendline will stop declines towards $7,200. Other support areas are $7,000 and $6,800.

BTC/USD 1-hour chart