Bitcoin price is consolidating losses above $6,300 against the US Dollar. BTC/USD remains in downtrend and it could decline further below the $6,267 low.
- Bitcoin is struggling to gain traction and is facing resistance near the $6,535 level.
- BTC/USD is trading inside an expanding triangle with resistance at $6,550 on the 2-hours chart.
- BTC price is likely to break the recent low at $6,267 to trade towards the $6,050 level.
Bitcoin price analysis
Bitcoin price tumbled recently from the $7,398 swing high against the US Dollar. BTC/USD dropped more than $1,050 and traded as low as $6,267 before buyers emerged.
The 2-hours chart of BTC price indicates that the price started a short-term correction from the $6,267 low and traded above the $6,380 level. The price even moved above the $6,450 level, but it faced a lot of sellers near the $6,535-40 zone.
It seems like the 23.6% Fibonacci retracement level of the last significant drop from the $7,398 high to $6,267 low is acting as a resistance near the $6,534 level. The price made a couple of attempts to break the $7,534 resistance level, but it failed to gain bullish momentum.
More importantly, there is an expanding triangle forming with resistance at $6,550 on the same chart. Recently, the price was rejected from the $6,520-6,535 zone and declined back towards the triangle support.
Bitcoin is currently trading in a range above the $6,300 level, but it remains at a risk of more losses below the $6,267 low. The next support is near the $6,100 level followed by the $6,050 swing low.
On the upside, a proper close above the $6,535 level could push the price further towards the $6,833 level, which is the 50% Fibonacci retracement level of the last significant drop from the $7,398 high to $6,267 low. Nevertheless, it won’t be easy for buyers to gain traction above the $6,650 and $6,700 level, considering the current technical structure.
Overall, bitcoin price remains in a bearish zone below $6,833 and the 100 simple moving average (2-hours). If sellers succeed in clearing the $6,267 low, it may well get very ugly in the near term for buyers.