- Bitcoin price declined recently below the $6,300 support before correcting higher against the US Dollar.
- There was a break above a connecting bearish trend line with resistance at $6,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is struggling to break the $6,380 resistance and the 100 hourly simple moving average.
Bitcoin price is trading in a bearish zone below $6,400 against the US Dollar. BTC/USD could decline further towards the $6,250 or $6,220 level in the near term.
Bitcoin Price Analysis
After trading as high as $6,553, bitcoin price started a major downside correction against the US Dollar. The BTC/USD pair traded below the $6,440 and $6,400 support levels to move into a bearish zone. The price even settled below the $6,400 support and the 100 hourly simple moving average. Sellers managed to push the price towards the $6,250 support before buyers appeared near $6,260.
A low was formed at $6,275 and later the price corrected higher. It moved above the 23.6% Fib retracement level of the last drop from the $6,553 high to $6,257 low. Moreover, there was a break above a connecting bearish trend line with resistance at $6,360 on the hourly chart of the BTC/USD pair. However, the upside move was capped by the $6,380 level and the 100 hourly SMA. It seems like the price may decline once again if there is a break below $6,340 and $6,320. In the mentioned scenario, the price could even trade below the $6,275 low and form a new weekly low.
Looking at the chart, bitcoin price needs to move past $6,380 and $6,400 to recover further. The next resistance is near $6,440 and the 61.8% Fib retracement level of the last drop from the $6,553 high to $6,257 low.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI just moved below the 50 level.
Major Support Level – $6,375
Major Resistance Level – $6,400
Author: Aayush Jindal