Key Points
- Bitcoin price is currently consolidating losses above the $6,240 support against the US Dollar.
- There is a major bearish flag forming with resistance at $6,310 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price remains at a risk of more losses below the $6,240 and $6,200 support levels.
Bitcoin price is under pressure below $6,300 against the US Dollar. BTC/USD is likely preparing for the next downside break below $6,202.
Bitcoin Price Analysis
Yesterday, we saw a major downside move below the $6,350 support in bitcoin price against the US Dollar. The BTC/USD pair declined heavily and broke the $6,240 support and the 100 hourly simple moving average. It traded as low as $6,202 and later started a short term correction. The price moved above the 23.6% Fib retracement level of the recent drop from the $6,433 high to $6,202 low.
However, the price struggled to move above the $6,300 resistance. More importantly, there was no test of the 50% Fib retracement level of the recent drop from the $6,433 high to $6,202 low. At the moment, there is a major bearish flag forming with resistance at $6,310 on the hourly chart of the BTC/USD pair. If the pair fails to stay above the flag support at $6,255, there could be a fresh decline towards the $6,202 low. If sellers remain in action, the price may even break the $6,202 low and trade towards the $6,150 level. On the flip side, a proper break above the flag resistance could push the price towards the $6,350 resistance and the 100 hourly SMA.
Looking at the chart, bitcoin price may continue to struggle to recover above the $6,300 and $6,350 levels. Therefore, there is a risk of more losses below the $6,240 level.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is still below the 50 level.
Major Support Level – $6,240
Major Resistance Level – $6,300