Key Points
- Bitcoin price struggled to gain traction and moved below the $6,200 support against the US Dollar.
- Yesterday’s highlighted important bearish trend line with resistance at $6,200 is acting as a barrier on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains at a risk of a downside break below $6,000 if it fails to move above $6,200.
Bitcoin price is under pressure below $6,200 against the US Dollar. BTC/USD must stay above the $6,000 support to avoid further losses in the near term.
Bitcoin Price Analysis
Yesterday, we saw a major rejection near the $6,300 resistance in bitcoin price against the US Dollar. The BTC/USD pair slowly and steadily declined and moved below the $6,200 support area. There was a failure noted around the 61.8% Fib retracement level of the last drop from the $6,750 swing high to $5,650 low. At the moment, the price is trading in a bearish zone below the $6,200 level and the 100 hourly simple moving average.
During the recent slide, there was a break below the 38.2% Fib retracement level of the last wave from the $5,658 low to $6,339 high. However, bitcoin buyers were able to hold declines below the $6,050 and $6,000 levels. The mentioned $6,000 support is very important for the current decline. It coincides with the 50% Fib retracement level of the last wave from the $5,658 low to $6,339 high. Therefore, a downside break below $6,000 could be significant for more losses. On the upside, yesterday’s highlighted important bearish trend line with resistance at $6,200 is intact on the hourly chart of the BTC/USD pair.
Looking at the chart, the price must break the trend line, 100 SMA, and the $6,200 resistance to avoid a downside break below $6,000. The next support is around the $5,850 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 40 level.
Major Support Level – $6,000
Major Resistance Level – $6,200
