Key Points
- Bitcoin price broke down and cleared a major support near the $6,000 level against the US Dollar.
- Yesterday’s highlighted declining channel with support at $5,950 was breached on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is now well below the $6,000 support and the 100 hourly simple moving average.
Bitcoin price moved into a bearish zone below $6,000 against the US Dollar. BTC/USD may perhaps extend its slide towards the $5,650 level in the near term.
Bitcoin Price Analysis
After trading in a key range above the $6,000 level, bitcoin price faced sellers against the US Dollar. The BTC/USD pair started a downside move and broke the $6,100 and $6,000 support levels. The decline was such that the price cleared the 61.8% Fib retracement level of the last leg from the $5,665 low to $6,338 high. It is now trading well below the $6,000 support and the 100 hourly simple moving average.
More importantly, yesterday’s highlighted declining channel with support at $5,950 was breached on the hourly chart of the BTC/USD pair. The pair traded as low as $5,789 and it is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $6,345 high to $5,789 low. However, the most important resistance is near the $6,100 level and the 100 hourly SMA. It is close to the 50% Fib retracement level of the last decline from the $6,345 high to $5,789 low.
Looking at the chart, the price may correct a few points in the short term towards $6,000 and $6,100. However, it is likely to face sellers above $6,000. Therefore, there are high chances of it declining further below $5,780 to test the last swing low of $5,650.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is correcting from the oversold levels.
Major Support Level – $5,780
Major Resistance Level – $6,100
