Bitcoin price recovered sharply after testing the $6,225 support against the US Dollar. BTC/USD has to break the $6,500 resistance for more upsides.
- Bitcoin’s decline found a strong support near the $6,225 pivot level.
- There is a declining channel formed with resistance at $6,460 on the 2-hour chart of BTC/USD.
- BTC price may perhaps continue to trade in a range with support at $6,255 and resistance near $6,500/80.
Bitcoin technical analysis
There was a sharp bearish reaction from the $6,500 resistance zone in bitcoin price. BTC/USD declined heavily and traded towards an important support zone at $6,225, where buyers emerged.
The 2-hours chart of BTC price indicates that there was a sharp recovery from the $6,225 support. The stated support acted as a buy zone on many occasions since it represents the 50% Fibonacci retracement level of the last wave from the $5,875 low to $6,621 high.
The price is currently trading above the $6,400 level and the 100 SMA (2-hours). The current price action is positive, but it seems like buyers are facing a tough challenge near the $6,500 resistance zone.
There is also a declining channel formed with resistance at $6,460 on the same chart. If he price breaks the channel resistance and $6,500, there could be more gains towards the $6,621 swing high. Above this, the price may possibly rally towards the $6,800 and $7,000 level.
On the flip side, if the price fails to move past $6,500, it might drop back towards the $6,225 support zone. Should sellers gain control, the price could drop to $6,065 and the 76.4% Fibonacci retracement level of the last wave from the $5,875 low to $6,621 high.
Overall, the bitcoin price seems to be trading in a broad range with support at $6,225 and resistance near $6,500. The current technical structure is positive as long as the price is above $6,225, but a convincing break above $6,500 is must for a follow-up rally. The RSI is also signaling a positive bias, which could gain traction once the price clears the $6,500 hurdle.