- Bitcoin price declined further and traded below the $6,200 support level against the US Dollar.
- There is a short-term connecting bearish trend line in place with resistance near $6,380-6,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently rebounding but it is likely to face many hurdles near $6,450 and $6,510.
Bitcoin price extended losses below $6,200 against the US Dollar. BTC/USD traded towards $6,100 and is currently rebounding on the road to the $6,510 resistance.
Bitcoin Price Analysis
There was no recovery in bitcoin price yesterday above the $6,600 level against the US Dollar. The BTC/USD pair extended losses and broke the $6,400 and $6,300 support levels. It traded close to the $6,100 level and formed a low at $6,106. Later, buyers took a stand the price started an upward move. It corrected above the $6,200 and $6,250 levels to set the pace for a decent recovery.
At the moment, the price is trading near a key hurdle at $6,400. The 23.6% Fib retracement level of the recent slide from the $7,157 high to $6,106 low is acting as a resistance. Moreover, there is a short-term connecting bearish trend line in place with resistance near $6,380-6,400 on the hourly chart of the BTC/USD pair. It seems like the price may dip a few points before it could move past $6,400 and $6,450. The next important resistance above $6,450 is near $6,510. It represents the 38.2% Fib retracement level of the recent slide from the $7,157 high to $6,106 low. Therefore, recoveries from the current levels are likely to face resistances near $6,450 and $6,500.
Looking at the chart, the current price action is indicating a short-term recovery in bitcoin above $6,400. However, gains could be limited and the price may perhaps resume its slide below $6,300 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently near the 40 level.
Major Support Level – $6,200
Major Resistance Level – $6,510
Author: Aayush Jindal