- Bitcoin price started a downside correction after climbing as high as $6,554 against the US Dollar.
- There was a break below a major bullish trend line with support at $6,420 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently at a risk of more losses below the $6,300 support area in the near term.
Bitcoin price is under pressure below $6,400 against the US Dollar. BTC/USD could decline towards $6,280 or $6,250 if sellers remain in control.
Bitcoin Price Analysis
This past week, we saw a decent upward move above the $6,400 and $6,500 levels in bitcoin price against the US Dollar. The BTC/USD pair traded towards the $6,550 level and settled above the 100 simple moving average (4-hours). A fresh monthly high was formed at $6,554 and later the price corrected lower sharply. It broke the $6,500 and $6,440 support levels to move back in a bearish zone.
The price also breached the 50% Fib retracement level of the last wave from the $6,202 low to $6,554 high. More importantly, there was a break below a major bullish trend line with support at $6,420 on the 4-hours chart of the BTC/USD pair. The pair traded below the $6,360 support and the 100 simple moving average (4-hours). At the moment, the price is consolidating above $6,300. If sellers remain in action, the price could slide towards the $6,280 level and the 76.4% Fib retracement level of the last wave from the $6,202 low to $6,554 high.
Looking at the chart, BTC price is currently struggling to break the $6,360-70 resistance zone and the 100 SMA. A successful close above $6,400 is needed for buyers to regain momentum. If not, there is a risk of a downside break below the $6,280 support in the near term.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently well below the 50 level.
Major Support Level – $6,250
Major Resistance Level – $6,400
Author: Aayush Jindal