Key Points
- Bitcoin price is currently consolidating below a major resistance at $6,500 against the US Dollar.
- There is a short-term breakout pattern in place with resistance at $6,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair has to move above $6,380 and $6,500 to gain upside momentum in the near term.
Bitcoin price is struggling to clear the $6,500 barrier against the US Dollar. BTC/USD could extend slides if it fails to move above $6,380 and $6,500.
Bitcoin Price Analysis
This past week, we saw a major downside move below $6,500 in bitcoin price against the US Dollar. The BTC/USD pair traded as low as $6,070 and later started an upward move. It corrected above the $6,200 and $6,300 resistance levels. However, the upside move was capped by the $6,440 level and the 100 hourly simple moving average. Moreover, the price failed to settle above the 23.6% Fib retracement level of the last significant drop from the $7,391 high to $6,070 low.
The price moved down, but the $6,200 level prevented declines. It seems like there is a short-term breakout pattern in place with resistance at $6,380 on the hourly chart of the BTC/USD pair. The pair has to move above the triangle resistance at $6,380 and the 100 hourly SMA to recover. The next major resistance is $6,500, which acted as a resistance on many occasions. If buyers succeed in clearing the $6,500 resistance, the next stop could be $6,730. It represents the 50% Fib retracement level of the last significant drop from the $7,391 high to $6,070 low.
Looking at the chart, bitcoin could soon make the next move either above $6,380 or below $6,200. If there is a downside break, the price might even break the $6,070 low and test $6,000.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently above the 45 level.
Major Support Level – $6,200
Major Resistance Level – $6,500