Analysis Technical

Bitcoin Price Watch: Here is Why $6,600 is Significant for BTC

Aayush Jindal | October 5, 2018 | 8:28 am
Analysis

Bitcoin Price Watch: Here is Why $6,600 is Significant for BTC

Aayush Jindal | October 5, 2018 | 8:28 am

Key Points

  • Bitcoin price remained below the $6,600 resistance level against the US Dollar.
  • This week’s followed important bearish trend line is still active with resistance at $6,585 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair has to clear the $6,585 and $6,600 resistance level to gain traction in the near term.

Bitcoin price struggled to clear the $6,600 resistance against the US Dollar. BTC/USD could react to the downside if there is a continuous failure near $6,600.

Bitcoin Price Analysis

During the past two analysis, we discussed the importance of the $6,600 resistance for bitcoin price against the US Dollar. The BTC/USD pair failed on many occasions to clear the $6,580 and $6,600 resistance zone. Moreover, there was also no close above the 100 hourly simple moving average and the $6,585 level. These are negative signs pointing towards a short-term weakness below the $6,550 level.

More importantly, this week’s followed important bearish trend line is still active with resistance at $6,585 on the hourly chart of the BTC/USD pair. The price recently declined below the 23.6% Fib retracement level of the last wave from the $6,399 low to $6,597 high. However, downsides were limited by the $6,500 support area. Additionally, the 50% Fib retracement level of the last wave from the $6,399 low to $6,597 high is also acting as a support. Below the $6,500 support level, there could be a bearish wave towards the $6,400 pivot level.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is clearly facing a solid barrier near the $6,600 level. A proper close above $6,585 and $6,600 is needed for buyers to gain upside momentum. The next crucial hurdle for them is near the $6,680 and $6,720 levels.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is just above the neutral 50 level.

Major Support Level – $6,500

Major Resistance Level – $6,600

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