Bitcoin Price Watch: BTC/USD Trading Near Major Inflection Point

Key Points

  • Bitcoin price declined further and traded below the $6,440 support against the US Dollar.
  • Yesterday’s highlighted key bullish trend line with support at $6,445 was breached on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price tested the next important support at $6,375 and later started consolidating losses.

Bitcoin price failed to stay above the $6,440 support against the US Dollar. BTC/USD is currently consolidating above the $6,375 support with bearish moves.

Bitcoin Price Analysis

Recently, bitcoin price started a downside correction and traded below the $6,500 support against the US Dollar. The BTC/USD pair declined and broke the $6,475 and $6,440 support levels. Moreover, there was a close below the $6,440 support and the 100 hourly simple moving average. The decline was such that the price surpassed the 76.4% Fib retracement level of the last leg from the $6,370 swing low to $6,553 high.

More importantly, yesterday’s highlighted key bullish trend line with support at $6,445 was breached on the hourly chart of the BTC/USD pair. The pair traded close to the $6,370 swing low and found support near $6,375. It corrected a few points and tested the 23.6% Fib retracement level of the recent decline from the $6,552 high to $6,382 low. At the moment, the price is consolidating above the $6,375 support. If buyers reappear, the price may test the previous support at $6,440 and the 100 hourly SMA. Above $6,440, the next resistance is $6,475 and the 50% Fib retracement level of the recent decline from the $6,552 high to $6,382 low.

Looking at the chart, bitcoin price may trade in a range above the $6,375 support for a couple of sessions before the next move. The price could either surpass the $6,440 resistance or decline towards $6,300 in the near term.

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 currently just below the 40 level.

Major Support Level – $6,375

Major Resistance Level – $6,440

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