Key Points
- Bitcoin price declined further and traded below the $6,440 support against the US Dollar.
- Yesterday’s highlighted key bullish trend line with support at $6,445 was breached on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price tested the next important support at $6,375 and later started consolidating losses.
Bitcoin price failed to stay above the $6,440 support against the US Dollar. BTC/USD is currently consolidating above the $6,375 support with bearish moves.
Bitcoin Price Analysis
Recently, bitcoin price started a downside correction and traded below the $6,500 support against the US Dollar. The BTC/USD pair declined and broke the $6,475 and $6,440 support levels. Moreover, there was a close below the $6,440 support and the 100 hourly simple moving average. The decline was such that the price surpassed the 76.4% Fib retracement level of the last leg from the $6,370 swing low to $6,553 high.
More importantly, yesterday’s highlighted key bullish trend line with support at $6,445 was breached on the hourly chart of the BTC/USD pair. The pair traded close to the $6,370 swing low and found support near $6,375. It corrected a few points and tested the 23.6% Fib retracement level of the recent decline from the $6,552 high to $6,382 low. At the moment, the price is consolidating above the $6,375 support. If buyers reappear, the price may test the previous support at $6,440 and the 100 hourly SMA. Above $6,440, the next resistance is $6,475 and the 50% Fib retracement level of the recent decline from the $6,552 high to $6,382 low.
Looking at the chart, bitcoin price may trade in a range above the $6,375 support for a couple of sessions before the next move. The price could either surpass the $6,440 resistance or decline towards $6,300 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just below the 40 level.
Major Support Level – $6,375
Major Resistance Level – $6,440