Bitcoin Price Analysis: BTC/USD Trading Near Make-or-Break Levels

bitcoin

Bitcoin Price Analysis: BTC/USD Trading Near Make-or-Break Levels

blue Trading

Bitcoin price traded above the $6,550 level recently against the US Dollar. BTC/USD traded as high as $6,585 before correcting back to the $6,380 support.

Important points

  • Bitcoin is currently correcting lower after hitting the weekly high at $6,585.
  • BTC/USD broke a short-term ascending channel with support at $6,510 on the 2-hours chart.
  • BTC price must stay above the $6,380 support to bounce back towards $6,600 and $6,650.

Bitcoin price analysis

Bitcoin price climbed higher recently and moved above the $6,380 and $6,400 resistance levels against the US Dollar. BTC/USD traded to a new weekly high at $6,585 before starting a downside correction.

The 2-hours chart of BTC price indicates that there was a sharp downside correction below the $6,500 level. The price declined below the 23.6% Fib retracement level of the last wave from the $6,187 low to $6,585 high.

bitcoin
Chart sourced by TradingView, Binance

More importantly, there was a break below a short-term ascending channel with support at $6,510 on the same chart. The price declined further and tested the previous resistance at $6,380, which acted as a support.

Additionally, the 50% Fib retracement level of the last wave from the $6,187 low to $6,585 high also acted as a support. The price is currently holding the $6,380-6,400 support area with a few positive signs.

If buyers fail to keep the price above the $6,380 support and the 100 simple moving average (2-hours), there could be more losses towards the $6.210 support. Below this, the next major support is near the $6,090 level.

On the other hand, if the price recovers back above the $6,500 and $6,550 resistances, it may well break the $6,585 high. The next major resistance for buyers is close to $6,620, followed by the $6,680 level. Finally, a push above the $6,700 barrier could open the doors for a test of $6,800.

Overall, the bitcoin price is trading near a major inflection point and it must stay above the $6,380 support and the 100 SMA. If not, BTC/USD will most likely trim most of its gains and decline back towards $6,210 or $6,090 in the near term.

Also, read: World’s Oldest Fiat Lost 99.5% Value while Currencies & Bitcoin Inv. of Emerging Markets’ Surging

Summary
Bitcoin Price Analysis: BTC/USD Trading Near Make-or-Break Levels
Article Name
Bitcoin Price Analysis: BTC/USD Trading Near Make-or-Break Levels
Description
Bitcoin price traded above the $6,550 level recently against the US Dollar. BTC/USD traded as high as $6,585 before correcting back to the $6,380 support.
Author
Publisher Name
COINGAPE
Publisher Logo
View comments
Latika Mehrotra 51 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.

Follow Latika @