Bitcoin price is facing an increased selling pressure below $6,600 against the US Dollar. BTC/USD may decline further if it fails to move above the $6,560 resistance.
Bitcoin Price AnalysisRecently, bitcoin price tested the $6,600 and $6,650 resistance levels against the US Dollar. The BTC/USD pair failed to gain momentum above $6,600, which resulted in a downside move. The price declined and broke a major support at $6,500. During the decline, there were bearish moves formed below the $6,600 level and the 100 hourly simple moving average.
More importantly, yesterday’s highlighted crucial bullish trend line was breached with support at $6,580 on the hourly chart of the BTC/USD pair. The pair declined and tested the $6,450 level. It is currently consolidating losses above the $6,420-00 support area. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $6,791 high to $6,447 low. There is also a bearish trend line formed with resistance at $6,560, and it coincides with the 100 hourly SMA. A break above the trend line may push the price towards $6,620. It is a crucial resistance and coincides with the 50% Fib retracement level of the last decline from the $6,791 high to $6,447 low.
Looking at the chart, the price is struggling to gain momentum above $6,550 and $6,600. Therefore, it is at a risk of more declines below $6,450. In the mentioned case, the $6,400 support holds a lot of importance and must hold to avoid a bearish break.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is well below the 40 level.
Major Support Level – $6,400
Major Resistance Level – $6,600
