Key Points
- Bitcoin price formed a support base above $6,300 and recovered higher against the US Dollar.
- There was a break above yesterday’s highlighted crucial bearish trend line with resistance at $6,480 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is now placed nicely above the $6,500 resistance level, which is a positive sign.
Bitcoin price jumped above the $6,500 barrier against the US Dollar. BTC/USD may continue to gain upside momentum above the $6,800 level in the near term.
Bitcoin Price Analysis
There was a solid support formed above the $6,300 level in bitcoin price against the US Dollar. The BTC/USD pair started a key upside move and settled above the $6,500 resistance zone. There was even a close above the $6,500 level and the 100 hourly simple moving average. It opened the gates for more gains and the price moved into a positive zone above the $6,600 level.
During the upside move, there was a break above yesterday’s highlighted crucial bearish trend line with resistance at $6,480 on the hourly chart of the BTC/USD pair. The pair even spiked above the $6,800 level and a high was formed at $6,808. At the moment, the price is correcting lower from $6,800 swing high. It is testing the 23.6% Fib retracement level of the last leg from the $6,328 low to $6,808 high. There may be a downside push below $6,680, but there are many supports on the way down. The most important support is the 50% Fib retracement level of the last leg from the $6,328 low to $6,808 high at $6,568.
Looking at the chart, the price is trading above $6,600 with a bullish formation. If there is a downside correction, it can be considered as a buying opportunity as long as BTC is above $6,500.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving lower towards the 60 level.
Major Support Level – $6,568
Major Resistance Level – $6,800