Bitcoin Price Analysis: Here is Why $6,250 is Significant for BTC/USD

By Latika Mehrotra
Published September 26, 2018 Updated September 26, 2018
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Bitcoin Price Analysis: Here is Why $6,250 is Significant for BTC/USD

By Latika Mehrotra
Published September 26, 2018 Updated September 26, 2018

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.

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Important points

  • 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.

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Chart sourced by TradingView, Binance

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.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Latika Mehrotra
71 Articles
Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

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