Key Points
- Bitcoin price traded higher recently and broke the $6,600 and $6,620 resistance levels against the US Dollar.
- There is a major bullish trend line in place with support at $6,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to climb higher towards the $6,650, $6,700 and $6,800 levels in the near term.
Bitcoin price is positioned nicely above $6,600 against the US Dollar. BTC/USD could accelerate gains above $6,640 to test the next resistance at $6,800.
Bitcoin Price Analysis
Yesterday, we discussed that bitcoin price seems to be preparing for the next leg either above $6,640 or below $6,460 against the US Dollar. The BTC/USD pair traded higher and broke the $6,600 and $6,620 resistance levels. There was also a break above the $6,640 level and the price settled above the 100 hourly simple moving average. It traded to a new weekly high at $6,688 and later it corrected lower.
It declined below the $6,650 level and the 23.6% Fib retracement level of the recent wave from the $6,490 low to $6,688 high. However, the downside move was protected by the $6,600 level, which was a resistance earlier. Moreover, the 50% Fib retracement level of the recent wave from the $6,490 low to $6,688 high acted provided support. There is also a connecting bullish trend line with support at $6,600 on the hourly chart of the BTC/USD pair. Below $6,600, the 100 hourly SMA could hold losses at $6,565. There is also another major bullish trend line in place with support at $6,550.
Looking at the chart, bitcoin price is positioned nicely above the $6,550 support. As long as the price is above $6,550 and the 100 hourly SMA, it could climb higher. An initial resistance is at $6,640, followed by $6,700 and the last one is at $6,800.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently above the 50 level.
Major Support Level – $6,550
Major Resistance Level – $6,640
