- Bitcoin price is declining steadily and it recently traded below the $7,000 support against the US Dollar.
- The price is now consolidating losses above the $6,540 support area.
- There is a major bearish trend line forming with resistance near $6,920 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could extend its decline below $6,500, but the $6,240 and $6,200 supports hold the key.
Bitcoin price is showing signs of bearish continuation below $6,540 against the US Dollar. However, BTC is likely to find a strong support near $6,240 and $6,200.
Bitcoin Price Analysis
This month, bitcoin price started a strong decline from the $7,800 and $7,700 resistance levels against the US Dollar. BTC is down more than 20% and it broke many supports near $7,100 and $7,000 to enter a bearish zone.
Moreover, there was a close below $7,000 and the 55 simple moving average (4-hours). The bears gained pace and the price tumbled below the $6,700 and $6,660 levels.
A new multi-month low was formed near $6,553 and the price is currently consolidating losses. An initial resistance is near the $6,730 level. Besides, the 23.6% Fib retracement level of the recent drop from the $7,299 high to $6,553 low is also near $6,730.
If bitcoin price corrects above $6,730, it could recover towards the $6,800 and $6,880 resistance levels. The first major resistance is near the $6,920 level. Additionally, there is a major bearish trend line forming with resistance near $6,920 on the 4-hours chart of the BTC/USD pair.
The 50% Fib retracement level of the recent drop from the $7,299 high to $6,553 low is also near the $6,920 level to prevent gains. The main resistance for a trend change is near the $7,000 and $7,115 levels.
A successful close above $7,000, $7,115, and the 55 simple moving average (4-hours) is needed to start a decent rebound in the near term.
On the other hand, the price could struggle to correct above $6,880 or $7,000. In the stated scenario, the price is likely to continue lower below $6,540 and $6,500. The next set of key supports is near the $6,240 and $6,200 levels.
Looking at the chart, bitcoin price is showing signs of more downsides below $6,500. Having said that, there are high chances of a strong buying interest near the $6,200 support area in the near term.
4 hour MACD – The MACD is slowly losing momentum in the bearish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently correcting higher, but still below the 30 level.
Key Support Levels – $6,540 and $6,240.
Key Resistance Levels – $6,880, $7,000 and $7,115.