Bitcoin price gained traction recently and traded above the $6,510 resistance against the US Dollar. BTC/USD is following an uptrend and it could soon test $6,650 or $6,675.
- Bitcoin price broke a major resistance zone near the $6,510 level.
- BTC/USD surpassed a significant bearish trend line with resistance at $6,485 on the 4-hours chart.
- BTC price could correct lower towards $6,550 before climbing to a new weekly high.
Bitcoin Price Analysis
During the past three sessions, there were positive moves in bitcoin price above the $6,485 resistance against the US Dollar. BTC/USD gained bullish momentum and broke the $6,510 and $6,555 resistance levels.
The 4-hour chart indicates that the price formed a solid support at $6,430 and jumped above the $6,485 resistance and the 100 simple moving average (4-hours). It opened the doors for more gains and buyers pushed the price above the key $6,510 pivot level.
More importantly, there was a break above a significant bearish trend line with resistance at $6,485 on the same chart. The price even surpassed the $6,600 zone and traded as high as $6,617 recently before starting a bearish correction.
The BTC/USD pair is currently trading near the 23.6% Fib retracement level of the last wave from the $6,430 low to $6,617 high. The current price action is positive above $6,560, but there is a possibility of a downside drift towards the $6,525 or $6,510 support area.
There is also a bullish trend line in place with support at $6,540 on the same chart, below which the next support is the 50% Fib retracement level of the last wave from the $6,430 low to $6,617 high at $6,523.
Therefore, if the price continues to decline, there could be a strong buying interest near the $6,510-6,525 support zone. On the upside, an initial resistance is at $6,600, above which the price will most likely clear the $6,617 high.
The next hurdle for buyers above the recent high is near the $6,650 followed by $6,675. Overall, bitcoin price is placed nicely above $6,510 for more gains in the short term.