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.
- 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).
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.