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.
- 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.
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.