Key Points
- Bitcoin price found support near $6,400 and bounced back against the US Dollar.
- Yesterday’s highlighted key bearish trend line is acting as a hurdle near $6,580-6,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair needs to surpass the trend line and the $6,600 resistance to extend gains in the near term.
Bitcoin price bounced back from the $6,400 support against the US Dollar. BTC/USD buyers need to gain strength above $6,600 for further upsides.
Bitcoin Price Analysis
Yesterday, we saw a bearish break below the $6,600 support in bitcoin price against the US Dollar. The BTC/USD pair traded below the $6,500 support and tested the $6,400 support. Later, the price formed a base near $6,400 and later started an upward move. There was a break above the $6,500 resistance and the price rallied above the $6,540 level.
During the upside, the price surpassed the 50% Fib retracement level of the last drop from the $6,640 swing high to $6,402 swing low. Moreover, there was a break above a connecting bearish trend line at $6,505 on the hourly chart of the BTC/USD pair. The pair even traded above the $6,560 level and the 100 hourly simple moving average. However, it seems like the price ran into a significant resistance at $6,580-6,660. More importantly, yesterday’s highlighted key bearish trend line is acting as a hurdle near $6,580-6,600 on the hourly chart of the BTC/USD pair. A proper close above the trend line and $6,600 is needed for buyers to take control. The next resistances are at $6,640 and $6,700.
Looking at the chart, bitcoin price bounced back nicely from $6,400, but it ran into the key $6,600 resistance. If buyers fail to break the stated resistance, there could be a fresh decline towards $6,480 and $6,400.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is moving nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is well above the 60 level.
Major Support Level – $6,400
Major Resistance Level – $6,600
