Key Points
- Bitcoin price declined recently and traded below the $6,470 support level against the US Dollar.
- There is a significant bullish trend line in place with support at $6,440 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to bounce back as long as it is above $6,440 and $6,375 in the near term.
Bitcoin price corrected lower below $6,500 against the US Dollar. BTC/USD is currently testing a major support at $6,440, which holds the key.
Bitcoin Price Analysis
Yesterday, we saw a nice upward move above the $6,500 resistance in bitcoin price against the US Dollar. The BTC/USD pair traded as high as $6,553 and settled above the 100 hourly simple moving average. Later, the price started a downside correction and traded below $6,510 and $6,500. Moreover, there was a break below the 50% Fib retracement level of the last wave from the $6,369 low to $6,553 high.
However, the price is now trading near a major support area at $6,440. More importantly, there is a significant bullish trend line in place with support at $6,440 on the hourly chart of the BTC/USD pair. Besides, the 61.8% Fib retracement level of the last wave from the $6,369 low to $6,553 high is also near $6,440. Therefore, the price is likely to hold the $6,440 support and it could resume its upside move. An initial resistance is near $6,480, above which the price may well break the $6,500 barrier again. On the other hand, a break below the $6,440 support could push the price towards the next support at $6,375.
Looking at the chart, bitcoin price is testing a few important supports near $6,440 and it will most likely bounce back. To the topside, a break above $6,500 might put buyers back in control.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 50 level.
Major Support Level – $6,440
Major Resistance Level – $6,500
