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
