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.
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]