Key Points
- Bitcoin price corrected lower recently after trading as high as $6,472 against the US Dollar.
- There is a major bullish trend line in place with support at $6,390 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is positioned for the next wave, which could be above the $6,420 resistance.
Bitcoin price is trading in a positive zone against the US Dollar. BTC/USD could continue to move higher as long as it is above $6,375 support level.
Bitcoin Price Analysis
Yesterday, bitcoin price started a downside correction after trading as high as $6,472 against the US Dollar. The BTC/USD pair declined below the $6,440 and $6,420 support levels. It also broke the 50% Fib retracement level of the last leg from the $6,319 low to $6,472 high. However, the price is still trading well above the $6,375 support and the 100 hourly simple moving average.
The price recently tested the $6,370-6,375 area, which acted as a support. Besides, the 61.8% Fib retracement level of the last leg from the $6,319 low to $6,472 high also provided support. More importantly, there is a major bullish trend line in place with support at $6,390 on the hourly chart of the BTC/USD pair. The pair is currently placed nicely above the $6,375 support and the 100 hourly simple moving average. On the upside, there is a connecting bearish trend line with resistance at $6,420. It seems like the price could dip towards $6,375 before it starts a fresh upward move above $6,420 and $6,440.
Looking at the chart, bitcoin price is still in an uptrend from the $6,200 support. Once buyers push the price above $6,440, there could be more gains above the $6,475 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently flat near the 50 level.
Major Support Level – $6,375
Major Resistance Level – $6,440
