Bitcoin Is In Steep Downtrend, But This Variable Can Trigger A New Rally

Bitcoin price followed a bearish path after it failed to surpass the $8,500 resistance against the US Dollar. BTC is now approaching a crucial support near $7,750 and $7,600.Bitcoin is trading near a significant buy zone at $7,600-$7,750 against the US Dollar.The bulls are likely to gain control if they are able to protect $7,600.There is a short term declining channel forming with resistance near $7,880 support near $7,930 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair could either bounce sharply above $8,000 or tumble below $7,750 and $7,600.Bitcoin Approaching Key SupportRecently, bitcoin bears took control and they were able to push the price below $8,000 against the US Dollar. Moreover, BTC settled below the $8,000 handle and the 100 hourly simple moving average.The price is now trading below the 50% Fib retracement level of the last major rally from the $7,302 low to $8,460 high. During the decline, there was a break below a key bullish trend line with support near $8,000 on the hourly chart of the BTC/USD pair.Bitcoin PriceThe pair is now trading near a significant buy zone at $7,600-$7,750. An immediate support is near the $7,750 level. Additionally, the 61.8% Fib retracement level of the last major rally from the $7,302 low to $8,460 high is at $7,744.The last key support is near the $7,600 area (the previous breakout zone). Both $7,750 and $7,600 are important buy zones. Therefore, there are chances of a fresh rally above the $8,000 resistance.An initial resistance is near the $7,900 level. There is also a short term declining channel forming with resistance near $7,880 support near $7,930 on the same chart.A successful break above the $7,900 and $8,000 resistance levels could set the pace for a decent rally. The next key resistances are near $8,180 and $8,300.Chances of Bearish Break in BTC Below $7,600There are slight chances of a downside break below the $7,600 support. However, if the bears are successful, it could start a steady downtrend and the price might extend its decline towards $7,300 and $7,100.Looking at the chart, bitcoin price is losing bearish momentum below $8,000, but the $7,750 and $7,600 supports are important. Overall, the price could either bounce sharply above $8,000 or tumble below $7,750 and $7,600.Technical indicators:Hourly MACD – The MACD is likely to move into the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining below the 40 level.Major Support Levels – $7,750 followed by $7,600.Major Resistance Levels – $7,880, $8,000 and $8,180.

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