Bitcoin Price Watch: BTC/USD Breaks Key Support

Key Points

  • Bitcoin price failed to recover above the $6,750 and $6,800 resistance levels against the US Dollar.
  • There is a key bearish trend line formed with resistance at $6,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair traded below the $6,500 support, which is a bearish sign in the near term.

Bitcoin price declined further below $6,500 against the US Dollar. BTC/USD could recover a few points, but upsides are likely to be capped by the $6,700 and $6,800 levels.

Bitcoin Price Analysis

There was a minor upside correction from the $6,600 support area in bitcoin price against the US Dollar. The BTC/USD pair traded close to the $6,800 and $6,900 resistance levels where sellers appeared. The price also failed to move above the 38.2% Fib retracement level of the last drop from the $7,600 high to $6,620 swing low. As a result, there was a downside reaction and the price declined below $6,600.

There was also a break below the $6,500 support area, igniting a downside reaction. A fresh monthly low was formed near $6,450 before the price started consolidating losses. It is currently trading in a tiny range around the 23.6% Fib retracement level of the last decline from the $6,905 high to $6,457 low. On the upside, there are many resistance levels around the $6,600 and $6,700 levels. There is also a key bearish trend line formed with resistance at $6,700 on the hourly chart of the BTC/USD pair. Moreover, the 50% Fib retracement level of the last decline from the $6,905 high to $6,457 low is also a major resistance.

Bitcoin Price Analysis BTC USD

Looking at the chart, the price is at a risk of more declines in the near term below $6,500. There could be an upside correction, but sellers are likely to appear around $6,700 and $6,800.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly moving back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is recovering higher from the 25 level.

Major Support Level – $6,400

Major Resistance Level – $6,800

See Original Post

Author: Aayush Jindal


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