Bitcoin Price Analysis: BTC/USD’s Resistance Turned Support

bitcoin

Bitcoin Price Analysis: BTC/USD’s Resistance Turned Support

Bitcoin price traded higher towards $6,800 against the US Dollar. BTC/USD was rejected near $6,800 and it is currently testing the previous resistance (now support) at $6,580.

Important points

  • Bitcoin moved down sharply and trimmed its gains from the $6,814 high.
  • BTC/USD is finding strong bids near the $6,580 level and the 100 simple moving average (2-hours).
  • BTC price remains supported above the $6,580 and $6,530 levels.

Bitcoin price analysis

Bitcoin price rallied recently after it broke a major resistance near $6,520 against the US Dollar. BTC/USD traded above the $6,650 and $6,750 levels and tested the $6,800 resistance zone.

The 2-hours chart of BTC price indicates that sellers were aggressive near the $6,800 level. The price traded as high as $6,814 and later declined sharply to trim most of its gains.

bitcoin
Chart sourced by TradingView, Binance

During the decline, there was a break below the $6,680 support and the 50% Fib retracement level of the last upward move from the $6,439 low to $6,814 high. However, the price is now approaching key supports near the $6,580 level.

At the moment, the 100 simple moving average (2-hours) is acting as a strong support near the $6,580-6,600 zone. Moreover, the 61.8% Fib retracement level of the last upward move from the $6,439 low to $6,814 high is also providing support.

Below the mentioned Fib level, there is a connecting bullish trend line with support at $6,540 level. If there is a downside break below the trend line, the price may move back in a bearish zone towards the $6,420 level.

On the other hand, if bitcoin bounces back from the 100 SMA, the price may resume its upside above $6,650. To the topside, there are key resistances formed near the $6,780, $6,800 and $6,820 levels. A break above these is needed for a push towards the $7,000 level.

Overall, bitcoin is trading in a positive zone above the $6,540 level and the 100 SMA. Buyers need to protect losses below $6,580 and 6,540. If not, there is a risk of BTC/USD declining back towards the $6,300 level in the near term.

Summary
Bitcoin Price Analysis: BTC/USD’s Resistance Turned Support
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Bitcoin Price Analysis: BTC/USD’s Resistance Turned Support
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Bitcoin price traded higher towards $6,800 against the US Dollar. BTC/USD was rejected near $6,800 and it is currently testing the previous resistance (now support) at $6,580.
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COINGAPE
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Author: Latika Mehrotra

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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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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