Bitcoin Technical Analysis: BTC/USD About to Explode?

Bitcoin Price Analysis

Bitcoin Technical Analysis: BTC/USD About to Explode?

Bitcoin price failed to break the $6,650-6,670 resistance and declined against the US Dollar. BTC/USD seems to be preparing for the next break either above $6,555 or below $6,420.

Important Points:

  • Bitcoin clearly faced a strong resistance near $6,650 and $6,610 levels.
  • BTC/USD is trading inside a contracting triangle with resistance at $6,555 on the 2-hours chart.
  • BTC price is likely to make the next move either above $6,560 or below $6,420-30.

Bitcoin Technical Analysis

In the last analysis, we discussed that bitcoin price is facing a strong resistance near the $6,650 and $6,670 levels against the US Dollar. BTC/USD failed to break the stated levels and declined below the $6,580 and $6,520 support levels.

The 2-hours chart indicates that sellers took control and pushed the price towards the $6,420 support. There was even a close below the $6,500 level and the 100 simple moving average (2-hours).

Bitcoin Technical Analysis
Chart Source by TradingView

The price traded as low as $6,430 and found support near a major bullish trend line on the same chart. Later, it corrected higher and moved above the 23.6% Fib retracement level of the recent slide from the $6,672 high to $6,430 low.

More importantly, it seems like there is a significant contracting triangle in place with resistance at $6,555. The triangle resistance coincides with the 50% Fib retracement level of the recent slide from the $6,672 high to $6,430 low plus the 100 simple moving average (2-hours).

Therefore, it won’t be easy for bitcoin buyers to break the $6,550-55 resistance zone. Above this, the price is likely to accelerate gains towards the $6,620 and $6,650 levels. The most important resistance on the upside for a push towards $7,000 is at $6,670.

On the other hand, if the price breaks the triangle support at $6,430, there could be a fresh downward move towards the $6,400 and $6,375 levels. Below this last, the price will most likely drop heavily towards the $6,200 support zone.

Overall, bitcoin seems to be approaching the next major break either above $6,555 or below $6,430. The current price action is suggesting a downside break unless buyers gain control and push the price above $6,555 and 100 SMA.

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Bitcoin Technical Analysis: BTC/USD About to Explode?
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Bitcoin Technical Analysis: BTC/USD About to Explode?
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Bitcoin Technical Analysis: Bitcoin price failed to break the $6,650-6,670 resistance and declined against the US Dollar. BTC/USD seems to be preparing for the next break either above $6,555 or below $6,420.
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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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