Key Points
- Bitcoin price declined below the $6,000 support and formed a low at $5,654 against the US Dollar.
- There are two bearish trend lines formed with resistance at $6,280 and $6,540 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may perhaps break the $6,280 resistance and test the next resistance at $6,500 in the near term.
Bitcoin price is in a bearish zone below $6,500 against the US Dollar. BTC/USD must break $6,280 and $6,540 to move back in a positive zone.
Bitcoin Price Analysis
There was another downside reaction below $5,900 in bitcoin price against the US Dollar. The BTC/USD pair extended declines below $5,800 and traded to a new monthly low at $5,654. Later, it started an upside correction above $5,700, but it is still way below the 100 hourly simple moving average. The price broke the 38.2% Fib retracement level of the last drop from the $6,734 high to $5,654 low.
However, the upside move was capped by a crucial resistance near $6,300, which was a support earlier. Moreover, the price faced sellers near the 50% Fib retracement level of the last drop from the $6,734 high to $5,654 low. Additionally, there are two bearish trend lines formed with resistance at $6,280 and $6,540 on the hourly chart of the BTC/USD pair. The pair is currently struggling to break the first trend line and the $6,280 resistance. Should there be an upside break, the price may perhaps test the second trend line at $6,540.
Looking at the chart, the price must clear the $6,280 and $6,300 barriers to recover further. Above these, the price could face heavy selling interest near $6,500. On the downside, supports are at $6,000, $5,800 and then at $5,650.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is currently flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is now well above the 50 level.
Major Support Level – $5,800
Major Resistance Level – $6,300