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Bitcoin (BTC) Bears Remain In Driver’s Seat But Bulls Not Done Yet

Avatar Aayush Jindal 2 months ago
  • Bitcoin price is extending losses below the $6,800 support area against the US Dollar.
  • A crucial support is waiting on the downside near $6,500 and $6,200.
  • There is a new connecting bearish trend line forming with resistance near $6,740 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The bears are in control, but the bulls might take a strong stand near $6,500 or $6,200.

Bitcoin (BTC) price is slowly approaching crucial supports against the US Dollar. BTC bears need to be very careful once the price reaches the $6,200 support area.

Bitcoin Price Analysis

After a daily close below the $7,000 support, bitcoin extended its decline against the US Dollar. BTC price traded below the $6,800 support area and settled well below the 100 hourly simple moving average.

The recent decline was such that the price even traded below the $6,600 support. It traded close to the $6,500 support area and a new monthly low was formed near $6,565.

The price is currently correcting higher and trading above $6,600. Moreover, there was a break above the 23.6% Fib retracement level of the recent slide from the $6,940 high to $6,565 low.

However, the $6,700 level seems to be acting as a hurdle for more upsides. Besides, there is a new connecting bearish trend line forming with resistance near $6,740 on the hourly chart of the BTC/USD pair.

The trend line is close to the 50% Fib retracement level of the recent slide from the $6,940 high to $6,565 low. Therefore, the first major hurdle for the bulls seem to be near the $6,740 and $6,800 levels.

If there is an upside break above the $6,800 resistance, the next major barrier for the bulls is near the $7,000 level (the key breakdown support). A successful close above the $7,000 pivot level and the 100 hourly SMA is must for a decent recovery and a possible trend change.

Conversely, the price is likely to continue lower below $6,600. On the downside, there are two important supports, $6,500 and $6,200. The main support is near the $6,200 level, which is a multi-month support and resistance area.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is approaching a couple of key supports near $6,500 and $6,200. For this reason, the bears must be very careful, considering the bulls are likely to fight if the price reaches the $6,200 support area.

Technical indicators:

Hourly MACD – The MACD is slowly moving into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to correct above the 40 level.

Major Support Levels – $6,500 followed by $6,200.

Major Resistance Levels – $6,740, $6,800 and $7,000.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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