On the upside, an initial resistance is seen near the $7,240 level. More importantly, there are two bearish trend lines forming with resistance near $7,240 and $7,400 on the hoBitcoin at Major Crossroads, Can Bulls Protect $7,000?y chart of the BTC/USD pair.
An intermediate resistance between two trend lines is near the $7,300 level and the 100 hoBitcoin at Major Crossroads, Can Bulls Protect $7,000?y simple moving average. Additionally, the 50% Fib retracement level of the recent slide from the $7,689 high to $7,117 low is near the $7,400 level.
Therefore, a successful close above the $7,400 resistance could start another increase. The next key resistance is near the $7,500 level, above which bitcoin is likely to accelerate towards the $7,700 resistance area.
On the downside, the $7,120 level is a major support. If the bulls fail to defend the $7,120 support, there is a risk of a sharp breakdown below the $7,000 support area. The next supports are near $6,800 and $6,600.