Bitcoin price recovered recently from the $6,325 low against the US Dollar. BTC/USD is correcting higher, but facing major hurdles near $6,520 and $6,550.
- Bitcoin is finding strong bids above the $6,300 support area.
- BTC/USD is testing an important bearish trend line with resistance near $6,520 on the 2-hours chart.
- BTC price remains nicely supported above the $6,380 level with a bullish angle.
Bitcoin price analysis
Bitcoin price found support near the $6,325 level during the recent decline against the US Dollar. BTC/USD later started an upward move and traded above the $6,380 and $6,400 levels.
The 2-hours chart of BTC price indicates that there was a break above the 23.6% Fib retracement level of the last decline from the $6,791 high to $6,325 low. It opened the doors for more gains and the price traded above the $6,450 level.
However, the price faced a strong resistance near the $6,500 and $6,520 levels. More importantly, there is an important bearish trend line in place with resistance near $6,520 on the same chart.
Additionally, the 100 simple moving average (2-hours) is also positioned near the trend line and the $6,520 level. Above the trend line resistance, the 50% Fib retracement level of the last decline from the $6,791 high to $6,325 low is at $6,558.
Therefore, bitcoin price needs to clear the $6,520 and $6,558 levels to move into a positive zone. On the other hand, if there is a downside correction, the price could find bids near the $6,440 and $6,400 levels. There is also a bullish trend line in place with support at $6,360.
As long as bitcoin is above the trend line support and the $6,350 level, it could make an attempt to surpass the $6,520 and $6,558 resistance levels. If there is a break below the trend line, there are chances of more losses towards the $6,210 level.
The current market sentiment is positive above the $6,360 level and it seems like there could be more range moves before the next move either above $6,558 or below $6,360.