Bitcoin Price Watch: BTC/USD Sellers Not Out of Woods Yet

Aayush Jindal

1 year ago

2 mins read

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Key Points

Bitcoin price broke the $6,520 and $6,500 supports, and dropped significantly against the US Dollar.
There was a break below a short-term bearish flag with support at $6,520 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair declined below the $6,400 and $6,240 support levels to test $6,100.

Bitcoin price dropped heavily towards $6,100 against the US Dollar. BTC/USD may correct higher, but buyers are likely to struggle near $6,280 and $6,320.

Bitcoin Price Analysis

Yesterday, we discussed that the previous supports near $6,550-6,560 are likely to prevent an upsides in bitcoin price against the US Dollar. The BTC/USD pair failed to gain above $6,550 and started a fresh downside move. It broke the $6,520 support to enter into a bearish zone. Sellers took control, resulting in a sharp decline in the price below the $6,400 and $6,240 support levels. The price settled below $6,400 and the 100 hourly simple moving average.

To start the decline, there was a break below a short-term bearish flag with support at $6,520 on the hourly chart of the BTC/USD pair. The pair even cleared the $6,240 support and tested the next important support at $6,100. A new weekly low was formed at $6,092 before the price started an upside correction. It moved above the 23.6% Fib retracement level of the recent decline from the $6,552 high to $6,092 low. However, the upside move seems to be capped around $6,240 and $6,280. The 50% Fib retracement level of the recent decline from the $6,552 high to $6,092 low is also near $6,322.

Looking at the chart, bitcoin price remains in a bearish zone below $6,400. As long as the price is below $6,320 and $6,400, there could be more losses below the $6,100 support in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly reducing its bearish slope.

Hourly RSI (Relative Strength Index) – The RSI is currently recovering from the oversold levels.

Major Support Level – $6,100

Major Resistance Level – $6,320

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.
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