- Bitcoin price declined further and traded below the $6,275 support level against the US Dollar.
- There are two bearish trend lines formed with resistance at $6,300 and $6,340 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price remains at a risk of more losses below the $6,250 support in the near term.
Bitcoin price is placed in a bearish zone against the US Dollar. BTC/USD could recover, but upsides are likely to be capped around the $6,340 level.
Bitcoin Price Analysis
During the past three sessions, there were bearish moves below $6,350 in bitcoin price against the US Dollar. The BTC/USD pair declined recently and broke the $6,300 and $6,275 support levels. There was even a spiked below the $6,250 support and the price formed a new monthly low at $6,239. The price recovered a few points above $6,275, but it is still well below the 100 hourly simple moving average.
An initial barrier for buyers is near the 50% Fib retracement level of the recent drop from the $6,375 high to $6,239 low. More importantly, there are two bearish trend lines formed with resistance at $6,300 and $6,340 on the hourly chart of the BTC/USD pair. Below the second trend line, the 100 hourly SMA is positioned at $6,325. Besides, the 61.8% Fib retracement level of the recent drop from the $6,375 high to $6,239 low is near $6,323. Therefore, if the price corrects higher from the current levels, it is likely to find a strong selling interest near $6,320 and $6,340.
Looking at the chart, bitcoin price is clearly in a bearish zone below the $6,350 pivot level. On the downside, an initial support is near $6,240, below which the price could slide towards the $6,200 support.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just near the 50 level.
Major Support Level – $6,340
Major Resistance Level – $6,240
Author: Aayush Jindal