Bitcoin Price Analysis: BTC/USD Holding Key Supports

Latika Mehrotra Price Analysis Publish On September 19, 2018 | Modified On September 19, 2018


Bitcoin Price Analysis: BTC/USD Holding Key Supports

Bitcoin price failed to break the $6,410 hurdle against the US Dollar. BTC/USD declined, but it is holding important supports above $6,250.

Important points

  • Bitcoin is trading well above the $6,220 and $6,250 support levels.
  • BTC/USD is trading inside a contracting triangle with resistance near $6,350 on the 2-hours chart.
  • BTC price is positioned nicely and it could rise towards $6,400 if buyers gain traction.

Bitcoin price analysis

Bitcoin price failed to hold gains above the $6,368 resistance zone and declined against the US Dollar. BTC/USD broke the $6,340 support area, but buyers managed to defend the $6,260 and $6,250 support levels.

The 2-hours chart of BTC price indicates that there was a failure to clear the $6,390, $6,400 and $6,410 resistance levels. There was also a spike above the 50% Fib retracement level of the last slide from the $6,536 high to $6,201 low, but buyers failed to hold gains.

Chart sourced by TradingView, Binance

The price failed to clear the $6,400 resistance and the 100 simple moving average (2-hours). A short-term top was formed and the price declined below the $6,350, $6,320 and $6,300 supports.

However, the downside move was prevented by the $6,250-6,260 support area. More importantly, it seems like there is a contracting triangle forming with resistance near $6,350. If the price moves higher, and breaks the $6,350 resistance, there could be more gains.

The $6,400 level and the 61.8% Fib retracement level of the last slide from the $6,536 high to $6,201 low at $6,408 are two important hurdles for bitcoin buyers.

A proper close above $6,400-6,410 is needed for buyers to take control and push the price towards the $6,500 and $6,550 levels in the near term. On the other hand, a bearish break below the $6,250 level may perhaps push the price back towards the $6,201 swing low.

It seems like bitcoin price is trading inside a range with support at $6,200 and resistance at $6,400. The next move could be either above $6,400 or below $6,200. The current price action suggests that the price may perhaps test the $6,400 range resistance in the coming sessions.

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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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