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.