Key Points
- Bitcoin price declined slightly and settled below the $6,300 level against the US Dollar.
- There was a break below a short term triangle pattern with support at $6,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently trading below the 100 hourly SMA and it could decline towards $6,080 or $6,000.
Bitcoin price is slowly moving lower against the US Dollar. BTC/USD may continue to move down and it could test the $6,080-6,000 support area in the near term.
Bitcoin Price Analysis
Yesterday, we discussed about a short-term break in bitcoin price either above $6,380 or below $6.240 against the US Dollar. The BTC/USD pair failed to move higher and faced heavy selling interest near the $6,380 and $6,400 levels. As a result, there was a downside reaction and the price declined below $6,240. The price traded below the $6,200 support and formed a new intraday low at $6,162.
More importantly, there was a close below the $6,300 level and the 100 hourly simple moving average. Additionally, there was a break below a short term triangle pattern with support at $6,320 on the hourly chart of the BTC/USD pair. Later, the pair found support near $6,160 and recovered above the 23.6% Fib retracement level of the recent drop from the $6,408 high to $6,162 low. However, upsides are capped by the 100 hourly SMA and $6,300. Besides, the price is facing resistance near the 50% Fib retracement level of the recent drop from the $6,408 high to $6,162 low.
Looking at the chart, bitcoin is forming another breakout pattern with support at $6,180 and resistance near $6,360. As long as the price remains below the $6,360 and $6,380 resistance levels, there is a risk of more losses towards $6,080 and $6,000.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is mostly pointing range moves in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just below the 50 level.
Major Support Level – $6,180
Major Resistance Level – $6,380
