Bitcoin is slowly recovering higher after trading as low as $6,559 against the US Dollar.
The bulls were able to push the price above the $6,750 and $6,800 level.
There is a major bearish trend line forming with resistance near $7,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to struggle near the 100 hourly simple moving average and $6,960.
Bitcoin Facing Hurdles
Yesterday, we saw a sharp decline in bitcoin price below the $6,800 level against the US Dollar. BTC price even traded below the $6,700 level and formed a new monthly low at $6,559.
It is currently correcting higher and trading above the $6,800 level. There was a break above the 23.6% Fib retracement level of the key drop from the $7,220 swing high to $6,559 low.
Bitcoin is now trading near a major resistance at $6,900 and the 100 hourly simple moving average. The 50% Fib retracement level of the key drop from the $7,220 swing high to $6,559 low is also acting as a strong resistance near the $6,888 level.
If the bulls manage to surpass the 100 hourly SMA, the price is likely to face hurdles near the $6,950 and $7,000 levels. There is also a major bearish trend line forming with resistance near $7,100 on the hourly chart of the BTC/USD pair.
Bitcoin Price
Therefore, the price is clearly facing a lot of hurdles, starting with $6,900 and up to $7,100. To move into a positive zone, the bulls need to gain momentum above the $7,000 resistance and then settle above $7,100. The next key hurdle on the upside is near the $7,500 level.
Fresh Decline?
If bitcoin fails to continue above the $6,900 resistance or the 100 hourly SMA, it could start a fresh decline. On the downside, an initial support is near the $6,750 area.
A successful break below the $6,700 support area could start a major decline. The next support is near the $6,560 level, below which the bears are likely to aim a test of the $6,200 support level in the near term.
Technical indicators:
Hourly MACD – The MACD is currently struggling to gain pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.
Major Support Levels – $6,750 followed by $6,560.
Major Resistance Levels – $6,900, $6,950 and $7,100.