Key Points
- Bitcoin price declined and tested the $6,200-6,220 support area against the US Dollar.
- There is a major bearish trend line forming with resistance near $6,480 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently correcting higher, but it could struggle to move past $6,480 and $6,500.
Bitcoin price failed to move above $6,600 recently and declined against the US Dollar. BTC/USD is recovering, but it may possibly continue to face sellers near $6,480.
Bitcoin Price Analysis
There was yet another failure near the $6,550 resistance in bitcoin price against the US Dollar. The BTC/USD pair topped at $6,549 and started a downside move. It broke the $6,350 and $6,300 support levels. It traded close to the $6,200 where buyers appeared and defended more losses. A low was formed at $6,222 before the price started an upward move. The price recovered above $6,300 and the 38.2% Fib retracement level of the last decline from the $6,549 high to $6,222 low.
On the upside, there is a key resistance formed near $6,424, which is near the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $6,480 on the hourly chart of the BTC/USD pair. The 61.8% Fib retracement level of the last decline from the $6,549 high to $6,222 low is also near the $6,420. Therefore, if the price continues to move higher, it could find resistance near the $6,480 and $6,550 levels. Only a close above $6,550 followed by a break of $6,620 could ignite bullish moves in the near term.
Looking at the chart, if bitcoin fails once again near the $6,550 resistance, it may well decline back to $6,300. Below this last, the price is likely to visit the $6,200 support area.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 50 level.
Major Support Level – $6,220
Major Resistance Level – $6,550
