Key Points
- Bitcoin price corrected higher and moved above the $6,350 resistance against the US Dollar.
- There is a key ascending channel forming with support at $6,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is facing a couple of important resistances near the $6,630 and $6,680 levels.
Bitcoin price is slowly rebounding from $6,200 against the US Dollar. BTC/USD must clear the $6,680 resistance and the 100 hourly SMA to gain bullish momentum.
Bitcoin Price Analysis
Yesterday, we discussed bitcoin price could rebound further from the $6,100 support against the US Dollar. The BTC/USD pair did move higher and broke the $6,350 and $6,550 resistance levels. The move was positive since the price broke the 38.2% Fib retracement level of the last drop from the $7,160 swing high to $6,100 swing low. However, the upside move faced a strong resistance near the $6,630 level.
It seems like the 50% Fib retracement level of the last drop from the $7,160 swing high to $6,100 swing low acted as a barrier. The price declined a few points and is currently trading near the $6,400-6,450 zone. More importantly, there is a key ascending channel forming with support at $6,300 on the hourly chart of the BTC/USD pair. The channel support is very important near the $6,300 level and is likely to act as a buy zone. On the upside, the channel resistance at $6,680 is positioned with the 100 hourly simple moving average. Therefore, a close above $6,680 is must for more gains in the near term.
Looking at the chart, there were positive moves in bitcoin price above the $6,100 and $6,300 levels. Going forward, if buyers gain strength above $6,680, there could be solid gains in BTC/USD towards $7,000.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently moving above the 50 level.
Major Support Level – $6,300
Major Resistance Level – $6,680
