- Bitcoin price extended declines below $5,330 and traded towards $5,200 against the US Dollar.
- There is a major bearish trend line in place with resistance at $5,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely positioning for an upward move above the $5,600 and $5,700 levels.
Bitcoin price extended losses towards $5,200 against the US Dollar. BTC/USD is currently rebounding and it could correct higher towards $5,900.
Bitcoin Price Analysis
Yesterday, we discussed the chances of more declines below $5,400 in bitcoin price against the US Dollar. The BTC/USD pair extended losses below the $5,330 swing low and traded towards the $5,200 low. A new 2018 low was formed at $5,206 and later the price started a fresh recovery. The price moved above the $5,300 and $5,400 resistance. Besides, there was a break above the 61.8% Fib retracement level of the last decline from the $5,646 high to $5,206 low.
Buyers also pushed the price above the $5,550 level, but they struggled near $5,600. Moreover, there is a major bearish trend line in place with resistance at $5,550 on the hourly chart of the BTC/USD pair. The pair seems to be preparing for a larger recovery above the $5,600 level. If there is a close above $5,600, the price could continue to move higher towards the $5,750 level. It represents the 1.236 Fib extension level of the last decline from the $5,646 high to $5,206 low. Finally, the main resistance could be $5,918, which is the 1.618 Fib extension level.
Looking at the chart, bitcoin price is likely forming an inverse head and shoulders pattern with resistance at $5,600. Therefore, a proper break above the $5,600 level will most likely push the price towards $5,750 or $5,900.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just below the 50 level.
Major Support Level – $5,400
Major Resistance Level – $5,600
Author: Aayush Jindal