Bitcoin price is still in a downtrend below the $6,750 resistance area against the US Dollar. BTC/USD is likely to make the next move either above $6,750 or below $6,050 in the medium term.
- · Bitcoin price is facing a significant resistance near the $6,650 and $6,750 levels.
- · BTC/USD is trading below a monster bearish trend line with resistance at $6,620 on the daily chart.
- BTC price needs to settle above the trend line and the $6,750 resistance for a positive bias.
Bitcoin Price Analysis
During the past few days, there was a slowly and steady rise from the $6,100 and $6,200 support levels in bitcoin price. BTC/USD traded above the $6,500 resistance level, but it struggled to clear a couple of important hurdles near $6,620 and $6,750.
The daily chart of BTC/USD indicates that the price traded above the 23.6% Fib retracement level of the last decline from the $7,413 high to $6,099 low. There was also a close above the $6,500 level and the 50-day simple moving average.
However, bitcoin sellers protected more gains above the $6,750 resistance. More importantly, the price failed to clear a monster bearish trend line with current resistance at $6,620 on the same chart.
Additionally, the 50% Fib retracement level of the last decline from the $7,413 high to $6,099 low also acted as a resistance and prevented gains. At the moment, the price is trading below the trend line, the 50-day SMA, and the $6,620 level.
To move into a bullish zone, the price has to settle above the trend line, $6,750 and the 50-day SMA. In the mentioned case, the price is likely to accelerate above the $7,000 level in the near term.
On the flip side, if bitcoin price fails to break the trend line resistance or $6,750, there could be a bearish reaction. On the downside, an initial support is near the $6,410 level, below which BTC/USD may well continue to move down towards the $6,200 level. The final important support for the current wave is near the $6,050 level, below which the price could decline towards $5,500.
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Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com