Key Points
- Bitcoin price is preparing for the next move with resistances near $6,385 and $6,530 against the US Dollar.
- Yesterday’s highlighted major breakout pattern is still active with resistance at $6,385 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to make the next move either above $6,400 or below $6,240 in the near term.
Bitcoin price remained confined in a range above $6,240 against the US Dollar. BTC/USD could recover to $6,530 if it breaks the $6,400 resistance.
Bitcoin Price Analysis
During the past three sessions, there was hardly any major move above $6,400 in bitcoin price against the US Dollar. The BTC/USD pair remained confined in a tight range above the $6,240 support level. Recently, there was an attempt by buyers to clear the $6,380-6,400 resistance zone. However, they failed to gain traction above $6,400 and the 100 hourly simple moving average. Additionally, the 23.6% Fib retracement level of the last drop from the $7,390 swing high to $6,070 low also prevented gains.
The price is currently trading near the $6,300 level with a few bearish signs. More importantly, yesterday’s highlighted major breakout pattern is still active with resistance at $6,385 on the hourly chart of the BTC/USD pair. Therefore, it seems like the price is likely to make the next move either above $6,400 or below $6,240. If buyers push the price above the $6,380-6,400 resistance zone, there could be a move towards the $6,530 resistance. Further above $6,530, the next resistance is near $6,730. On the other hand, a downside break below $6,240 may perhaps open the doors for more losses towards $6,000.
Looking at the chart, bitcoin is poised for the next break, which could be towards the $6,530 level. However, upsides are likely to be capped near $6,530, $6,550 and $6,600.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just above the 50 level.
Major Support Level – $6,240
Major Resistance Level – $6,400
