Key Points
- Bitcoin price failed to stay above the $6,300 and $6,280 support levels against the US Dollar.
- Yesterday’s highlighted key contracting triangle was breached with support at $6,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair even traded to a new monthly low below $6,000 and moved into a bearish zone.
Bitcoin price broke key supports near $6,280 against the US Dollar. BTC/USD may correct higher, but broken supports at $6,050 and $6,280 are likely to cap gains.
Bitcoin Price Analysis
Yesterday, we discussed that bitcoin price could gain momentum if it breaks the $6,570 resistance against the US Dollar. The BTC/USD pair failed to break the $6,570 and $6,600 resistance levels, and declined. It dropped sharply and broke many supports like $6,450, $6,300 and $6,280. It even settled below the $6,100 level and the 100 hourly simple moving average.
During the decline, yesterday’s highlighted key contracting triangle was breached with support at $6,350 on the hourly chart of the BTC/USD pair. It cleared the path for more losses and the price declined below the $6,000 support. A new monthly low was formed at $5,894 and the price is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the last drop from the $6,547 high to $5,894 low. Above $6,050 and $6,100, the next major resistance is near the $6,200-6,280 zone. Moreover, the 50% Fib retracement level of the last drop from the $6,547 high to $5,894 low is around the $6,220. Therefore, if the price corrects higher, it could face sellers near the $6,200 resistance area.
Looking at the chart, bitcoin is under a lot of pressure below $6,300. Should buyers fail to push the price back above $6,200 and $6,300, there may well be more losses towards the $5,700 and $5,500 levels.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed heavily the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently below the 30 level.
Major Support Level – $5,880
Major Resistance Level – $6,220
