Bitcoin Price Analysis: Can BTC/USD Break This Crucial Resistance?

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Bitcoin Price Analysis: Can BTC/USD Break This Crucial Resistance?

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.

Important points

  • 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).

Chart sourced by TradingView, Binance

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.

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Bitcoin Price Analysis: Can BTC/USD Break This Crucial Resistance?
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Bitcoin Price Analysis: Can BTC/USD Break This Crucial Resistance?
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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.
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COINGAPE
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Latika Mehrotra 58 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. Reach out to her [email protected]

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