Key Points
- Bitcoin price declined recently and broke the $6,450 and $6,400 support levels against the US Dollar.
- There was a break below a major bullish trend line with support at $6,440 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may perhaps continue to move down towards the $6,120 support area in the near term.
Bitcoin price decline extended below the $6,400 support against the US Dollar. BTC/USD may correct higher, but it could face sellers near $6,340 and $6,380.
Bitcoin Price Analysis
Recently, there was a downside reaction from the $6,630 swing high in bitcoin price against the US Dollar. The BTC/USD pair started a fresh decline and moved below the $6,420 and $6,400 supports. It opened the doors for more losses and the price fell below $6,300. There was even a close below the $6,400 support and the 100 hourly simple moving average.
Moreover, there was a break below a major bullish trend line with support at $6,440 on the hourly chart of the BTC/USD pair. The pair traded as low as $6,209 and later started consolidating losses. On the upside, an initial resistance is near the 23.6% Fib retracement level of the recent decline from the $6,533 high to $6,209 low. Above this, there is a connecting bearish trend line in place with resistance at $6,320. Finally, the 50% Fib retracement level of the recent decline from the $6,533 high to $6,209 low is at $6,368. Therefore, if the price corrects higher, it could find resistance near the $6,360-80 zone.
Looking at the chart, bitcoin is back in a negative zone below the $6,380 level. On the downside, a break below the $6,200 support zone could open the doors for more losses towards $6,120 and $6,080.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is presently well below the 40 level.
Major Support Level – $6,200
Major Resistance Level – $6,380
