Bitcoin price declined recently and tested the key $7,500 support area against the US Dollar.The price rebounded and traded above the $7,780 and $7,850 resistance levels.Yesterday’s highlighted key declining channel is acting as a barrier near $7,980 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair could drop once again towards the $7,720 support area before it starts a fresh increase.Bitcoin price rebounded nicely above $7,700 and $7,850 against the US Dollar. However, BTC is facing a strong resistance and it could decline again before the bulls take control.Bitcoin Price AnalysisYesterday, we saw a major downside correction in bitcoin price below the $7,850 support against the US Dollar. The BTC/USD pair traded below the $7,720 support level and the 100 hourly simple moving average. Besides, it broke the key $7,660 support and tested the $7,500 support area. A swing low was formed at $7,475 and the price recently rebounded nicely above $7,660. The bulls pushed the price above the $7,720 and $7,850 resistance levels.However, it seems like the price is struggling to gain momentum above $7,950 and $8,000. Moreover, yesterday’s highlighted key declining channel is acting as a barrier near $7,980 on the hourly chart of the BTC/USD pair. The recent high was at $7,994 and the price is currently moving lower. An immediate support is near $7,800, below which the price could test the 50% Fib retracement level of the upward move from the $7,475 low to $7,994 high. The current price action indicates that the price is facing a strong resistance near $7,980 and $8,000.If there is a successful close above $8,000, the price could start a solid rise towards the $8,200 and $8,300 resistance levels. Conversely, there is a risk of another drop below $7,800. The main support is near $7,670, and the 61.8% Fib retracement level of the upward move from the $7,475 low to $7,994 high.Looking at the chart, bitcoin price rebounded nicely from the $7,475 level. However, the $8,000 barrier stopped upsides and it might start a fresh decline below $7,800. Once the current correction is complete near $7,670 or $7,600, the price is likely to climb back sharply. In the mentioned case, the price may perhaps surpass the $8,000 resistance. The next key resistances on the upside are near $8,200, $8,300 and $8,500.Technical indicators:Hourly MACD – The MACD is about to move back in the bearish zone, with a few negative signs.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower and it could test the 50 level.Major Support Levels – $7,670 followed by $7,600.Major Resistance Levels – $7,950, $7,980 and $8,000.
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