Key Points
- Bitcoin price recovered recently, but it failed to break the $6,540-50 resistance zone against the US Dollar.
- There is a crucial hurdle formed near $6,540 and two bearish trend lines on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair needs to break the $6,540 resistance and the 100 hourly SMA to gain momentum.
Bitcoin price is trading below key resistances against the US Dollar. BTC/USD could retest the $6,400 and $6,350 supports before an upside move.
Bitcoin Price Analysis
There was a solid rise above the $6,400 level in bitcoin price against the US Dollar. The BTC/USD pair recovered above the $6,490 and $6,500 resistance levels. There was also a break above the 50% Fib retracement level of the downside move from the $6,660 swing high to $6,315 swing low. However, the upside move faced a strong resistance near the $6,540-50 region.
More importantly, the 61.8% Fib retracement level of the downside move from the $6,660 swing high to $6,315 swing low prevented gains. It seems like there is an important resistance formed near $6,540 and two bearish trend lines on the hourly chart of the BTC/USD pair. Additionally, the 100 hourly simple moving average is also positioned near $6,540 to act as a barrier for buyers. If bitcoin buyers succeed in surpassing the $6,540, $6,550 and the 100 hourly SMA, there could be more gains. The next resistance is at $6,660, followed by the $6,750 level.
Looking at the chart, bitcoin price is clearly following a bearish bias below $6,540. On the downside, an initial support is at $6,400. If there is a break below the $6,400 support, the price may decline towards the $6,350 support. The next key support is near the recent swing low at $6,315.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI moved below the 50 level.
Major Support Level – $6,350
Major Resistance Level – $6,540
