Bitcoin started a downside correction from the $7,447 monthly high against the US Dollar. BTC price tested the key $7,000-$7,100 demand zone and recently revered losses.Bitcoin failed to extend gains above $7,500 and corrected lower against the US Dollar.The bulls protected the $7,000 support area, resulting in a fresh increase.There is a major bullish trend line forming with support near $7,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair is likely to continue higher towards $7,500 and $7,800 in the near term.Bitcoin Remains in the Green ZoneYesterday, we saw a strong rally in bitcoin above the $7,000 and $7,200 resistance levels against the US Dollar. BTC even broke the $7,400 level, but it struggled to extend gains above $7,500.A new monthly high was formed near $7,447 and the price corrected lower. There was a break below the $7,200 support area. However, the bulls were able to protect the $7,000-$7,100 demand zone and the price remained stable above the 100 hourly simple moving average.Bitcoin just reversed and it is now trading above the $7,200 level. There was a clear break above the 50% Fib retracement level of the recent decline from the $7,447 high to $7,085 low.It is testing the $7,350 area or the 76.4% Fib retracement level of the recent decline from the $7,447 high to $7,085 low. More importantly, there is a major bullish trend line forming with support near $7,200 on the hourly chart of the BTC/USD pair.Bitcoin PriceIf there is a clear break above the $7,400 level, the price is likely to surpass the $7,447 high. An immediate resistance is near the $7,500 level, above which the gates are likely to open for a push towards the $7,800 and $8,000 resistance levels.Dips Remain SupportedOn the downside, there are many supports, starting with $7,200. Bitcoin price is likely to remain well bid above $7,200 and $7,100 in the near term.The main support is now forming near the $7,080 level, below which the bears are likely to aim a test of the $7,000 support and the 100 hourly SMA. Any further losses might lead the price towards the $6,900 breakout zone.Technical indicators:Hourly MACD – The MACD is currently gaining momentum in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is back above the 50 level.Major Support Levels – $7,200 followed by $7,100.Major Resistance Levels – $7,400, $7,500 and $7,800.
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