Key Points
- Bitcoin price failed to trade higher towards $6,800 and declined recently against the US Dollar.
- Yesterday’s highlighted key bullish trend line was breached with support at $6,560 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair declined below the $6,500 support and tested the $6,440 support level.
Bitcoin price trimmed most of its gains against the US Dollar. BTC/USD could recover, but the broken support at $6,560 might act as a resistance.
Bitcoin Price Analysis
Yesterday, we discussed that bitcoin price could climb higher towards the $6,800 level against the US Dollar. However, the BTC/USD pair failed to break the $6,640 and $6,700 resistance levels. It resulted in a downside move below the $6,550 support and the 100 hourly simple moving average. The price moved into a bearish zone as it cleared the important $6,500 support as well.
During the decline, yesterday’s highlighted key bullish trend line was breached with support at $6,560 on the hourly chart of the BTC/USD pair The pair even broke the last swing low at $6,490. Finally, it tested the 1.236 Fib extension level of the last wave from the $6,491 low to $6,687 high. The price formed an intraday low at $6,441 and it is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $6,687 high to $6,441 low. If buyers push the price above the $6,500 level, the next stop could be the $6,560 level. The stated $6,560 level along with the 100 hourly SMA are likely to act as hurdles for buyers.
Looking at the chart, bitcoin price broke a few key supports and tested $6,440. It may bounce back, but the previous supports near $6,550-6,560 are likely to prevent an upside break.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 40 level.
Major Support Level – $6,440
Major Resistance Level – $6,560
