Bitcoin price declined below the main $6,360 support against the US Dollar. BTC/USD is currently in a downtrend and it could accelerate declines towards $6,110.
- Bitcoin price moved into a bearish zone after it broke the $6,390 and $6,360 supports.
- BTC/USD declined below an important triangle support at $6,360 on the 4-hours chart.
- BTC price is likely to continue lower towards the $6,160 or $6,110 support level.
Bitcoin Price Analysis
After a long struggle to clear the $6,480 and $6,490 resistance levels, there was a downside move in bitcoin price. BTC/USD started declining and broke the $6,390 and $6,360 support levels to move into a bearish zone.
The 4-hours chart of BTC/USD indicates that the price traded below the 50% Fib retracement level of the last wave from the $6,055 low to $6,493 swing high. Besides, there was a close below the $6,320 level and the 50 simple moving average (4-hours).
More importantly, the decline was initiated after the price declined below an important triangle support at $6,360 on the same chart. It cleared the path for a sharp decline and the price traded towards the $6,200 zone.
It tested the 61.8% Fib retracement level of the last wave from the $6,055 low to $6,493 swing high. Buyers defended losses below the $6,222 level and the price later started consolidating losses.
Going forward, there could be two scenarios, first, the price corrects higher towards the $6,320 or $6,360 resistance levels and later start a fresh downward move. Second, the price continues to move down and test the next main support near the $6,160 level.
In both cases, the price is at a risk of more declines below the $6,222 support level. On the downside, the $6,160 level is a decent support. However, the main support is near the $6,110 level, below which there is a possibility that the price may slide towards the $6,000 handle.
Overall, bitcoin price moved into a bearish zone and any upward move towards the $6,320 or $6,360 resistance levels is likely to face a strong selling interest.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com