Bitcoin price trimmed most of its last week gains and broke the $7,200 support against the US Dollar. BTC/USD is currently testing an important support at $6,400, below which, it could slide to $6,000.
- Bitcoin was completely rejected from the $8,200 and $8,400 resistance area.
- BTC/USD broke a crucial bullish trend line with support at $6,800 on the daily chart.
- BTC price is under a lot of pressure below $7,000 and it is testing the last important support before $6,000.
Bitcoin Price Analysis
The past few days were extremely bearish on bitcoin price as it failed to surpass the $8,200 and $8,400 resistance levels. BTC/USD tumbled with back-to-back bearish candles on the daily chart and settled below $7,000.
The daily chart of BTC/USD indicates that the price broke the 50% Fibonacci retracement level of the last significant upward move from the $6,096 low to $8,510 swing high.
It opened the doors for more declines and BTC price traded below the $7,000 support and settled below the 100-day simple moving average. More importantly, there was a break below a crucial bullish trend line with support at $6,800 on the same chart.
At the moment, the price is testing an important support at $6,400, which was a pivot level and a support earlier. Moreover, it coincides with the 88.6% Fibonacci retracement level of the last significant upward move from the $6,096 low to $8,510 swing high.
Therefore, the price may perhaps recover a few points from the $6,400 support. However, recoveries are likely to face many challenges near the $6,800 and $7,000 levels. Only a close above the $7,200 pivot level and the 100-day SMA could push the price back in a positive zone.
Should the price break the $6,400 support and there is a 2-hour close below $6,380, there could be a sharp drop towards the next support at $6,000. Below this, the price will most likely revisit the last low at $5,770.
Overall, bitcoin price entered a strong bearish zone and a failure to hold $6,400 and $6,000 possibly will result in heavy declines in the near term.