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Key Points
- Bitcoin price struggled to move above the $7770 level against the US Dollar and started a downside move.
- There was a break below a major bullish trend line with support at $6780 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- The pair is now well below the $6500 level and remains in the bearish zone.
Bitcoin price struggled and moved below $6500 against the US Dollar. BTC/USD might continue to decline and it could even break $6000.
Bitcoin Price Turned Bearish?
It was yet another bullish week for bitcoin price as it moved above the $7500 level against the US Dollar. The price even managed to move above $7700 and traded to a new all-time high of $7773. Later, it failed to hold gains and started a downside move. It broke the 23.6% Fib retracement level of the last wave from the $5362 low to $7773 high. The downside move was strong as the price broke the $7000 level and the 100 simple moving average (H4).
Sellers even broke a major bullish trend line with support at $6780 on the 4-hours chart of BTC/USD. Moreover, the pair is now well below the 50% Fib retracement level of the last wave from the $5362 low to $7773 high. That’s why, there are chances of it extending declines in the near term. At present, the pair seems to be approaching the $6000 handle, which might act as a support. Once there is a break of the $6000 level, there are chances of more declines toward $5650.
On the upside, the broken support near $6750 and the 100 simple moving average (H4) are resistance zones. Selling rallies near $6750 can be opted in the short term as long as the price is below $7000.
Looking at the technical indicators:
4-hours MACD – The MACD is gaining pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently near the oversold levels.
Major Support Level – $6000
Major Resistance Level – $6750
Charts courtesy – SimpleFX
