Here’s Why Bitcoin Could Correct To $6.5K Before A Fresh Rally

Aayush Jindal

Last Updated: June 11, 2024 1:47 pm

2 mins read

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Bitcoin surged above the $7,000 resistance and reached the $7,200 bullish target against the US Dollar. BTC price is currently correcting lower and it could test the $6,500 support area.

Bitcoin rallied significantly above the $6,800 and $7,000 resistance levels against the US Dollar.
The price tested the $7,200 target (as discussed yesterday) before correcting lower.
There is a key bullish trend line forming with support near $6,715 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower towards the $6,500 support before it starts a fresh increase.

Bitcoin Turns Green

Yesterday, we discussed the chances of more upsides in bitcoin after it broke the key $6,500 and $6,600 resistance levels against the US Dollar. BTC did trade higher and broke many important resistances, starting with $6,800.

The bulls gained pace and the price rallied above the $7,000 resistance. The price tested the $7,200 target (as discussed yesterday) and settled well above the 100 hourly simple moving average.

A new weekly high is formed near the $7,273 and the price is currently correcting lower. It broke the $7,000 level, plus the 23.6% Fib retracement level of the recent surge from the $6,156 low to $7,273 high.

Bitcoin even traded below the $6,800 support area. However, the decline was protected by the $6,700 region. It seems like there is a key bullish trend line forming with support near $6,715 on the hourly chart of the BTC/USD pair.

The 50% Fib retracement level of the recent surge from the $6,156 low to $7,273 high is also acting as a strong support. If the price fails to stay above the trend line support and $6,700, it could extend its downside correction.

The main support is now forming near the $6,500 area (the recent breakout zone), where the bulls are likely to take a strong stand in the coming sessions.

More Upsides

If bitcoin remains well bid above the $6,700 and $6,500 support levels, it is likely to continue higher. An initial resistance is near the $7,000 level.

The next key resistance is near the $7,200 level, above which the price is likely to surpass the recent high of $7,273. Any further gains could lead the price towards the $7,500 resistance.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.

Major Support Levels – $6,700 followed by $6,500.

Major Resistance Levels – $6,900, $7,000 and $7,200.

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Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

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Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.