Bitcoin price is holding the $6,550 support area against the US Dollar. However, BTC/USD seems to be struggling near a strong resistance at $6,650-6,670.
- Bitcoin is facing a tough resistance near the $6,650 and $6,670 levels.
- BTC/USD is following a key bullish trend line with support at $6,560 on the 2-hours chart.
- BTC price must hold the $6,500 support to clear hurdles near the $6,650 resistance.
Bitcoin price analysis
Bitcoin price started an upward move from the $6,464 low against the US Dollar. BTC/USD traded above the $6,480, $6,500 and $6,550 resistance levels to move into a positive zone.
The 2-hours chart indicates that buyers pushed the price above the 23.6% Fib retracement level of the recent drop from the $6,816 high to $6,464 low plus the 100 simple moving average (2-hours).
The current price action is positive above the $6,500 support level and the 100 simple moving average (2-hours). However, there is a very strong resistance near the $6,650 and $6,670 levels, which were supports earlier.
More importantly, the 50% Fib retracement level of the recent drop from the $6,816 high to $6,464 low is at $6,640. Therefore, the price has to break the $6,640, $6,650 and $6,670 resistances to gain bullish momentum in the near term.
On the downside, an initial support is near $6,570 and the 100 SMA. Besides, there is a key bullish trend line with support at $6,560 on the same chart. If sellers succeed in pushing the price below the trend line and the $6,550 support, there is a risk of a break below the $6,500 pivot level.
In the bearish scenario, the price may drop back towards the last swing low at $6,464, below which the next target for sellers could be $6,360.
Overall, bitcoin is showing a few positive signs above the $6,550 level, but buyers need to gain traction above the $6,670 level. The next major resistance on the upside is close to $6,785, which prevented a bullish break towards $7,000 on multiple times. In the short term, there may possibly be range moves above $6,500 before the next move.