Bitcoin price tumbled and broke many supports like $7,000, $6,800 and $6,560 against the US Dollar.There was a break below a declining channel with support at $6,790 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair has moved into a bearish zone and upsides are now likely to face sellers near $6,560 and $6,800.
Bitcoin price plummeted below the $6,800 and $6,560 supports against the US Dollar. BTC/USD could accelerate declines if sellers push the price below $6,200.
Bitcoin Price Analysis
After hitting the $7,300 and $7,400 targets, Bitcoin price faced a strong resistance against the US Dollar. The BTC/USD pair started a sharp downside move and tumbled below the $7,000 support. There was a sharp rejection pattern noticed around the $7,400 level, which resulted in heavy losses. The price even broke the $6,800 support area and settled below the 100 hourly simple moving average.
During the decline, there was a break below a declining channel with support at $6,790 on the hourly chart of the BTC/USD pair. Finally, the price broke the $6,560 support area and surpassed the $6,500 level. It traded close to the $6,200 support area and formed a low at $6,249. Later, it corrected higher and is currently testing the 23.6% Fib retracement level of the recent decline from the $6,988 high to $6,249 low. If there is an upside break above the $6,450 and $6,500 levels, the price could test $6,618. It represents the 50% Fib retracement level of the recent decline from the $6,988 high to $6,249 low.
Looking at the chart, Bitcoin is back in a bearish zone below $6,560. If sellers remain in action and pushes the price below $6,200, BTC/USD could retest the $6,000 support in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 25 level.
Major Support Level – $6,200
Major Resistance Level – $6,618