Bitcoin price broke the $6,540 and $6,520 support levels to move into a bearish zone against the US Dollar.Yesterday’s highlighted important contracting triangle was breached with support at $6,520 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair tested the $6,400 support level and it is currently correcting higher in the short term.
Bitcoin price breached key supports around $6,520 against the US Dollar. BTC/USD is now at a risk of more losses towards the $6,360 support.
Bitcoin Price Analysis
During the past two days, we mostly saw range moves below the $6,700 resistance in Bitcoin price against the US Dollar. The BTC/USD pair recently faced an increased selling pressure and declined below the $6,540 support. The price even settled below the $6,500 support and the 100 hourly simple moving average. It seems like buyers failed to gain traction above the $6,620 level, resulting in a bearish break.
More importantly, yesterday’s highlighted important contracting triangle was breached with support at $6,520 on the hourly chart of the BTC/USD pair. The pair traded towards the $6,400 support and formed a low at $6,401. It is currently correcting higher towards the 23.6% Fib retracement level of the recent drop from the $6,598 high to $6,401 low. It may perhaps continue to move higher towards the $6,500-6,520 zone, which is likely to act as a resistance. It also represents the 50% Fib retracement level of the recent drop from the $6,598 high to $6,401 low. Besides, there are two connecting bearish trend lines in place with resistance near $6,520.
Looking at the chart, Bitcoin price may correct higher in the short term, but the previous support at $6,520 could prevent gains. On the downside, a break below the recent low at $6,401 may push the price towards the $6,360 support.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently near the 30 level.
Major Support Level – $6,400
Major Resistance Level – $6,520