Bitcoin price corrected lower after setting a new weekly high around $7,130 against the US Dollar.Yesterday’s discussed significant bullish trend line is intact with support at $6,920 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair remains well supported near the $6,920 and $6,850 levels in the near term.
Bitcoin price dipped a few points to test the $6,920 support against the US Dollar. BTC/USD remains in uptrend as long as it is above $6,775.
Bitcoin Price Analysis
Yesterday, we saw a sharp bullish wave above the $7,000 resistance in Bitcoin price against the US Dollar. The BTC/USD pair traded as high as $7,131 and later started a downside correction. It declined below the $7,025 support and started trading in a range. There was a break below the 23.6% Fib retracement level of the last rise from the $6,709 low to $7,131 high.
There was even a spike below the $7,000 and $6,950 levels. However, the 50% Fib retracement level of the last rise from the $6,709 low to $7,131 high acted as a strong support. There was no close below the $6,920 support and the 50% Fib level. More importantly, yesterday’s discussed significant bullish trend line is intact with support at $6,920 on the hourly chart of the BTC/USD pair. Below the trend line, the 100 hourly simple moving average is positioned near the $6,870 level. However, the main support for the current trend is $6,775, which was a resistance earlier.
Looking at the chart, Bitcoin seems to be very well supported near the $6,950, $6,870 and $6,775 levels. On the upside, the price has to clear the $7,025 and $7,080 resistance to challenge the $7,131 high. Finally, a break above $7,130-50 could set the pace for a test of $7,250.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is currently moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is bouncing back from the 40 level.
Major Support Level – $6,920
Major Resistance Level – $7,080