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Key Points
- Bitcoin price is trading in a tight range above the $6,540 support against the US Dollar.
- There is a key contracting triangle in place with support at $6,545 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is poised to make the next move either above $6,610 or below $6,540 in the short term.
Bitcoin price is approaching the next key break against the US Dollar. BTC/USD could climb higher if buyers push the price above $6,610 and $6,642.
Bitcoin Price Analysis
During the past two sessions, there was no major move above $6,660 in bitcoin price against the US Dollar. The BTC/USD pair remained confined in a tight range and stayed above the $6,540 support. Recently, there was a dip below the $6,500 level, but the price recovered quickly. It climbed above the $6,500 level and the 50% Fib retracement level of the recent slide from the $6,642 high to $6,488 low.
However, the upside move was capped by the $6,600 resistance and the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the recent slide from the $6,642 high to $6,488 low also acted as a resistance. At the outset, there is a key contracting triangle in place with support at $6,545 on the hourly chart of the BTC/USD pair. The triangle resistance is at $6,600, above which the price is likely to face sellers near the $6,642 swing high. Once there is a clear break above the $6,642 high, the price will most likely climb towards the $6,700 and $6,740 levels. On the other hand, a downside break below $6,545 and $6,520 may well open the doors for an extended slide towards $6,360.
Looking at the chart, bitcoin price seems to be preparing for the next move either above $6,610 or below $6,540. The current price action is slightly bearish, but as long as the price is above $6,500, it could trade higher.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is mostly flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is near the 50 level.
Major Support Level – $6,540
Major Resistance Level – $6,610
