- Bitcoin price declined and tested the $6,550-$6,600 support area against the US Dollar.
- It is currently correcting higher and trading above the $6,800 level.
- There is a major bearish trend line forming with resistance near $7,050 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair must surpass $7,050 and $7,200 to start a strong upward move in the near term.
Bitcoin price is struggling to recover above $7,000 and $7,200 against the US Dollar. BTC could resume its decline if there is no successful close above $7,200.
Bitcoin Price Analysis
This past week, there was a fresh decline in bitcoin price from the $7,500 resistance against the US Dollar. BTC broke the $7,000 support level to move into a bearish zone.
Besides, there was a close below the $7,000 level and the 55 simple moving average (4-hours). It tested the $6,550-$6,600 support area and traded as low as $6,558.
The price is currently correcting higher and trading above $6,800. There was a break above the 50% Fib retracement level of the recent decline from the $7,202 high to $6,558 low.
However, there are many key resistances on the upside, starting with the $6,960 level. It represents the 61.8% Fib retracement level of the recent decline from the $7,202 high to $6,558 low. There is also a major bearish trend line forming with resistance near $7,050 on the 4-hours chart of the BTC/USD pair.
The 55 simple moving average (4-hours) is the main hurdle near $7,060 level. A successful break above the trend line and the 55 SMA is needed for a fresh increase towards $7,165 and $7,200.
Any further gains might start a strong uptrend and the price could rise towards $7,500 and $7,600 in the near term. Conversely, the price might fail to surpass the $7,050 resistance area.
If the bulls fail, there is a risk of another decline towards the $6,550-$6,600 support area. If there is a clear break below the $6,558 swing low, the bears are likely to aim a larger decline towards the $6,200 and $6,150 levels.
Looking at the chart, bitcoin price is clearly approaching a couple of key hurdles near $7,050 and $7,165. If the bulls fail to push the price above $7,200, there are high chances of a downside break below the $6,558 swing low.
Technical indicators
4 hours MACD – The MACD is struggling to gain pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is currently just above the 50 level.
Key Support Levels – $6,600 and $6,550.
Key Resistance Levels – $7,050, $7,165 and $7,200.