- Bitcoin price revered yesterday’s gains and traded below the $6,500 support against the US Dollar.
- There is a short-term ascending channel in place with support at $6,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could dip towards the $6,340 or $6,320 support before moving back higher.
Bitcoin price is struggling to gain momentum above $6,500 against the US Dollar. BTC/USD could correct a few points before a fresh upward move.
Bitcoin Price Analysis
Yesterday, we saw a sharp upward move above the $6,700 level in bitcoin price against the US Dollar. The BTC/USD pair traded above the $6,800 level and topped at $6,829. Later, there was a major downside move and the price reversed most gains below $6,500. There was even a push below the $6,400 support and a low was formed at $6,349. Later, the price started consolidating and moved above the $6,400 level.
It tested the 23.6% Fib retracement level of the recent decline from the $6,829 high to $6,349 low. However, buyers failed to clear the $6,500 resistance level. At the outset, there is a short-term ascending channel in place with support at $6,400 on the hourly chart of the BTC/USD pair. The pair seems to be struggling to break the $6,500 and $6,520 resistances. Therefore, there could be a downside correction below the channel support at $6,400. The price may test the $6,340 or $6,320 support levels before buyers take back control. On the other hand, a break above the $6,500 and $6,520 resistance will most likely call for more gains.
Looking at the chart, bitcoin price is placed in a positive zone above $6,280. However, the price must break $6,520 and then 50% Fib retracement level of the recent decline from the $6,829 high to $6,349 low at $6,590 to climb further higher.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is still above the 50 level.
Major Support Level – $6,400
Major Resistance Level – $6,500