Key Points
- Bitcoin price declined further, broke the $6,400 support, and traded as low as $6,318 against the US Dollar.
- There are two bearish trend lines in place with resistance at $6,520 and $6,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to face a strong resistance near the $6,580 level if there is an upside correction.
Bitcoin price extended declines towards the $6,275 level against the US Dollar. BTC/USD may perhaps correct higher, but it won’t be easy for a push above $6,580.
Bitcoin Price Analysis
There was a sharp downside reaction below the $6,600 pivot level in bitcoin price against the US Dollar. The BTC/USD pair declined further below the $6,450 and $6,400 levels to move into a bearish zone. The recent low was formed at $6,318 before the price started consolidating losses. It tested the 23.6% Fib retracement level of the last decline from the $6,660 high to $6,318 low.
However, gains were limited by the $6,450 level. Moreover, the 50% Fib retracement level of the last decline from the $6,660 high to $6,318 low is also near the $6,489 level to act as a resistance. More importantly, there are two bearish trend lines in place with resistance at $6,520 and $6,580 on the hourly chart of the BTC/USD pair. Therefore, if the price continues to move higher, it is likely to face sellers near the $6,450 and $6,480 levels. Above the trend lines and the $6,500 barrier, the price could test the $6,620 pivot level. On the downside, the $6,400 level is an initial support.
Looking at the chart, bitcoin price is slowly recovering from the $6,318 low. However, upsides are likely to face a lot of sellers near the $6,450 and $6,480 levels in the near term.
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 currently above the 50 level.
Major Support Level – $6,350
Major Resistance Level – $6,480
