Bitcoin price formed a short-term bottom at $5,874 against the US Dollar. BTC/USD bounced back above $6,300, but it is currently testing a crucial resistance where buyers could fail.
Important points
- Bitcoin jumped sharply above $6,300 after trading as low as $5,874.
- There is a significant bearish trend line in place with current resistance near $6,400-6,440 on the 2-hours chart.
- BTC price must clear the $6,440 sell wall to continue higher towards $6,750.
Bitcoin price analysis
Recently, we saw a major downward move in bitcoin price below the $6,220 and $6,000 support levels. BTC/USD broke the last swing low and traded to a new low at $5,874 before buyers took a stand.
The 2-hours chart of BTC price suggests that there was a solid reversal from the $5,874 low. The price bounced back and broke the $6,220 and $6,300 resistance levels.
During the rise, the price also cleared the 50% Fibonacci retracement level of the last slide from the $6,553 high to $5,874 low. It opened the doors for more gains above $6,220, but the price ran into a significant resistance zone.
There is an important bearish trend line in place with current resistance near $6,400-6,440 on the same chart, which is currently preventing gains along with the 100 simple moving average (2-hours, close).
Moreover, the price is struggling to move above the 76.4% Fibonacci retracement level of the last slide from the $6,553 high to $5,874 low. There were 2-3 attempts already to break the $6,400-6,440 resistance zone, but bitcoin buyers failed to gain momentum.
Therefore, there are two possible scenarios – first, the price breaks the $6,440 resistance and trades towards the last swing high at $6,553. Second, sellers regain control and bitcoin price drops back towards the $6,220 and $6,100 support levels.
Should there be a break above $6,553, the price may perhaps move into a bullish zone with the next targets as $6,640 and $6,750. On the flip side, a failure to gain momentum above $6,440 could be a strong bearish signal and bitcoin will most likely resume its downtrend in the near term.
Also, read: Bitcoin in Danger of Crashing to $1000 in the Long Term, says Wall Street Strategist
![Bitcoin Price [BTC] Analysis: Buyers Run Into Crucial Resistance Zone](https://static.coingape.com/wp-content/uploads/2018/08/15184318/bitcoin40.jpg)
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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]
