Bitcoin price declined recently and tested the $6,350-60 support area against the US Dollar.There is a major bearish trend line formed with resistance at $6,410 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price is likely forming a double bottom pattern near the $6,350-60 support area.
Bitcoin price bounced back sharply from $6,360 against the US Dollar. BTC/USD could accelerate higher once there is a break above the $6,410 resistance.
Bitcoin Price Analysis
Yesterday, there was a downside reaction from the $6,460 level in Bitcoin price against the US Dollar. The BTC/USD pair fell below the $6,400 and $6,410 support levels. There was also a close below the $6,400 support and the 100 hourly simple moving average. The decline was such that the price retested the $6,350-60 support area. There was a strong buying interest emerged near $6,360, resulting in a fresh upward move.
The price bounced back sharply and moved above the $6,390 level. There was also a break above the 23.6% Fib retracement level of the recent decline from the $6,465 high to $6,355 low. The current price action indicates that BTC is likely forming a double bottom pattern near the $6,350-60 support area. On the upside, there is a major bearish trend line formed with resistance at $6,410 on the hourly chart of the BTC/USD pair. The same trend line is near the 100 hourly SMA and the 50% Fib retracement level of the recent decline from the $6,465 high to $6,355 low.
Looking at the chart, Bitcoin price will most likely accelerate gains once there is a proper close above $6,410 and the 100 hourly SMA. Moreover, if the double bottom pattern is valid, the price could even break the $6,465 high to trade further higher.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is just near the 50 level.
Major Support Level – $6,360
Major Resistance Level – $6,410