- Bitcoin price failed to hold an important support at $6,550 and declined sharply against the US Dollar.
- There was a break below a key bullish trend line with support at $6,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently consolidating near the $6,300 level and it remains at a risk of more declines.
Bitcoin price tumbled sharply below $6,550 against the US Dollar. BTC/USD may correct a few points, but later it could resume its decline below $6,300 in the near term.
Bitcoin Price Analysis
Bitcoin price faced an increased selling pressure above $6,600 against the US Dollar. The BTC/USD pair started a downside move and broke a major support at $6,550. It opened the doors for more losses and the price declined by more than $250. It seems like a short-term top was formed at $6,800 and the price may accelerate declines in the near term.
During the decline, there was a break below a key bullish trend line with support at $6,580 on the hourly chart of the BTC/USD pair. The pair is now trading well below the $6,500 level and the 100 hourly simple moving average. The recent low was formed at $6,279 and the price is currently consolidating. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $6,799 high to $6,279 low. There is also a bearish trend line formed on the same chart with resistance near $6,400. Above this, the next resistance is near $6,500.
Looking at the chart, bitcoin is clearly in a bearish zone below $6,550. The stated level is now near the 50% Fib retracement level of the last decline from the $6,799 high to $6,279 low. Therefore, any upsides are likely to face resistance near $6,500-50. On the downside, a break below $6,279 may call for a test of $6,200.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving higher towards the 40 level.
Major Support Level – $6,280
Major Resistance Level – $6,500