Bitcoin Price Analysis: Why Upsides Are Capped In BTC/USD?

bitcoin

Bitcoin Price Analysis: Why Upsides Are Capped In BTC/USD?

Bitcoin price traded to a new monthly low below $5,980 against the US Dollar. BTC/USD is correcting higher, but it is facing a few important hurdles on the upside.

Important points:

  • Bitcoin recovered very well after trading below the $6,000 support level. 
  • There is a crucial bullish trend line formed with support at $6,360 on the 2-hours chart.
  • BTC price is facing a major resistance near $6,560 and the 100 SMA (2-hours).

Bitcoin price analysis

This past week, we saw a significant bearish wave in bitcoin price below the $6,800 support area. BTC/USD even traded below the $6,200 support and formed a new monthly low at $5,976.

The 2-hours chart of BTC/USD indicates that the price found a strong support near the $6,000 level and started an upward move. Buyers gained traction and pushed the price above the $6,200 and $6,300 levels.

bitcoin
Chart sourced by TradingView, Binance

The bullish wave was solid since the price traded above the 38.2% Fibonacci retracement level of the last major decline from the $7,159 high to $5,976 low. It even moved past the $6,500-6,540 resistance zone.

However, the upside move was capped by a significant barrier near the $6,560 level and the 100 simple moving average (2-hours). More importantly, the price failed to break the 50% Fibonacci retracement level of the last major decline from the $7,159 high to $5,976 low.

At present, the price is consolidating below the $6,560 resistance area and is showing a few bearish signs. On the downside, there is a crucial bullish trend line formed with support at $6,360 on the same chart.

Therefore, if the price dips from the current levels, it could find support near the $6,360 and $6,350 levels. Below these, the price may perhaps retest the $6,220 support area. If bitcoin sellers manage to push the price below $6,220, the last $6,000 support may possibly be tested.

On the flip side, if buyers gain momentum and succeed in surpassing the $6,560 resistance, the price will most likely climb above the $6,700 level.

Overall, the bitcoin price is approaching a short-term break either above $6,560 or below $6,350 in the coming sessions.

Also, read: Sentimental Analysis for Cryptocurrencies – Caution Sighted as Sentiment Turns Neutral with Negativity Rising

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Bitcoin Price Analysis: Why Upsides Are Capped In BTC/USD?
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Bitcoin Price Analysis: Why Upsides Are Capped In BTC/USD?
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Bitcoin price traded to a new monthly low below $5,980 against the US Dollar. BTC/USD is correcting higher, but it is facing a few important hurdles on the upside.
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COINGAPE
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Author: Latika Mehrotra

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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Latika Mehrotra 71 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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