Bitcoin is showing signs of an upside correction from the $6,761 low against the US Dollar.
A few key hurdles are forming on the upside near the $6,955 and $7,030 levels.
There is a major bearish trend line forming with resistance near $7,030 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue lower towards the $6,550 support area, where the bulls are likely to emerge.
Bitcoin Facing Hurdles
Yesterday, we saw a 5% decline in bitcoin price below the $7,000 support area against the US Dollar. BTC even broke the $6,800 support level and the 100 hourly simple moving average.
It traded as low as $6,761 and it is currently consolidating losses. There was a break above the 23.6% Fib retracement level of the downward move from the $7,295 high to $6,761 low.
An initial resistance on the upside is seen near the $6,955 level (the recent breakdown zone). The first major resistance is near the $7,000 and $7,030 levels. There is also a major bearish trend line forming with resistance near $7,030 on the hourly chart of the BTC/USD pair.
Bitcoin Price
The trend line coincides with the 100 hourly simple moving average at $7,035. Besides, the 50% Fib retracement level of the downward move from the $7,295 high to $6,761 low is near the $7,028 level.
If there is an upside correction, bitcoin bulls are likely to struggle near the $7,000 and $7,030 levels. A successful close above the trend line, the 100 hourly SMA and $7,050 could open the doors for a fresh increase. The next key hurdle above $7,050 is near the $7,200 level.
Main Uptrend Support
If bitcoin fails to continue higher, it remains at a risk of more downsides below $6,800 and the $6,761 low. The next major support is near the $6,555 level, where the bulls are likely to take a stand.
If the bulls struggle to keep the price above the main $6,555, there is a risk of a larger decline towards the $6,200 and $6,000 support levels in the near term.
Technical indicators:
Hourly MACD – The MACD is currently losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Major Support Levels – $6,750 followed by $6,555.
Major Resistance Levels – $6,960, $7,030 and $7,200.
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