Key Points
- Bitcoin price extended losses and traded to a new weekly low at $6,261 against the US Dollar.
- There is a major bearish trend line in place with resistance at $6,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is at a risk of more declines below the $6,275 and $6,260 support levels in the near term.
Bitcoin price is currently in a downtrend below $6,350 against the US Dollar. BTC/USD could tumble once there is a break and close below the $6,250 support.
Bitcoin Price Analysis
Yesterday, we discussed that bitcoin price may trade to a new weekly low below $6,275 against the US Dollar. The BTC/USD pair did trade lower and broke the $6,275 support. A new weekly low was formed at $6,261 and later the price recovered a few points. The price is back above the $6,275 level, but it is well below the 100 hourly simple moving average. Buyers pushed the price above the 23.6% Fib retracement level of the recent decline from the $6,377 high to $6,261 low.
However, there are many resistances on the way up around the $6,320 and $6,350 levels. More importantly, there is a major bearish trend line in place with resistance at $6,350 on the hourly chart of the BTC/USD pair. The same trend line is near the 100 hourly SMA at $6,345. An intermediate resistance is $6,322 and the 61.8% Fib retracement level of the recent decline from the $6,377 high to $6,261 low. Therefore, if the price corrects higher, it may find a strong resistance between $6,320-6,350.
Looking at the chart, bitcoin price is trading just above the $6,260 and $6,275 support levels. If sellers gain momentum, there could be a sharp decline below the $6,250 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is still placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 50 level.
Major Support Level – $6,260
Major Resistance Level – $6,350
