Bitcoin is down around 4% and it is now trading well below the $6,800 level against the US Dollar.
There was a break below the $6,555 support and the price traded to a new weekly low at $6,476.
There are two key bearish trend lines forming with resistance near $6,790 and $6,960 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to remain in a downtrend and it could even decline towards $6,200 or $6,000.
Bitcoin Resumes Decline
Yesterday, we discussed the chances of a bearish rejection in bitcoin near $6,950 or $7,000 against the US Dollar. BTC price did fail to surpass the $7,000 resistance area and started a fresh decline.
There was a sharp drop below the $6,800 level and the 100 hourly simple moving average. It opened the doors for more losses and the price broke the $6,555 support area. It traded to a new weekly low at $6,476 and currently correcting higher.
Bitcoin is back above the $6,555 and $6,600 levels. There was a break above the 23.6% Fib retracement level of the recent decline from the $6,984 high to $6,476 low.
However, there are many hurdles on the upside for the bulls, starting with $6,730. It represents the 50% Fib retracement level of the recent decline from the $6,984 high to $6,476 low. The first key resistance is near the $6,800 level and the 100 hourly simple moving average.
There are also two key bearish trend lines forming with resistance near $6,790 and $6,960 on the hourly chart of the BTC/USD pair. If the pair corrects higher from the current levels, it is likely to face a strong selling interest near $6,800.
Bitcoin Price
To move into a positive zone, the bulls need to clear the $6,800 resistance and gain momentum above the $7,000 resistance area.
More Downsides
Once the current correction wave is complete, bitcoin is likely to resume its decline below the $6,600 level. An initial support is near the $6,555 level, below which the price might struggle to stay above $6,476.
Any further losses are likely to lead the price towards the $6,200 support level or the $6,000 pivot zone in the near term.
Technical indicators:
Hourly MACD – The MACD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering towards the 40 level.
Major Support Levels – $6,555 followed by $6,475.
Major Resistance Levels – $6,730, $6,800 and $7,000.
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