Bitcoin price is currently struggling to clear the $6,500 and $6,600 resistance levels against the US Dollar.
There are a few key supports forming, starting with $6,120 and $6,080.
There is a key contracting triangle forming with resistance near $6,500 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
The pair could correct a few points, but it is likely to bounce back from $6,120 or $6,000.
Bitcoin price is trading in a broad range above $6,000 against the US Dollar. BTC could start a major upward move if it clears the $6,500 resistance area.
Bitcoin Price Analysis
In the past few days, there was a decent upward move in bitcoin price above the $5,800 resistance against the US Dollar. BTC even settled nicely above the $6,000 level and the 55 simple moving average (4-hours).
The last swing high was formed near $6,972 before the price corrected lower below $6,500. It traded as low as $5,859 and recently started an upside correction. There was a break above the $6,000 and $6,200 resistance levels.
Besides, there was a break above the 50% Fib retracement level of the downward move from the $6,972 high to $5,859 low. The price even traded above the $6,400 level and the 55 simple moving average (4-hours).
However, it struggled to gain momentum above the $6,500 and $6,580 resistance levels. There is also a key contracting triangle forming with resistance near $6,500 on the 4-hours chart of the BTC/USD pair.
The 61.8% Fib retracement level of the downward move from the $6,972 high to $5,859 low is also acting as a resistance. Therefore, an upside break above the $5,500 and $5,580 resistance levels is needed for a strong rise towards the $7,000 and $7,200 levels.
On the downside, an initial support is near the $6,120 level. The main support is near the $6,000 level and the triangle lower trend line. If the price fails to stay above the $6,000 support, it could revisit the $5,859 low. Any further losses could open the doors for more downsides towards the $5,500 level.
Looking at the chart, bitcoin price is trading in a broad range above the $6,000 support. The bulls need to gain strength above $6,500 and $6,580 for upside continuation. If not, it could revisit the $5,859 low.
4 hours MACD – The MACD is slowly losing pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is currently declining and it is near the 50 level.
Key Support Levels – $6,120 and $6,000.
Key Resistance Levels – $6,500, $6,580 and $7,000.
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