Key Points
- Bitcoin price traded further higher above the $6,450 and $6,510 resistances against the US Dollar.
- There is a short term ascending channel in place with support at $6,505 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely forming a double top pattern near the $6,600 resistance.
Bitcoin price gained traction above $6,450 and tested $6,600 against the US Dollar. BTC/USD is currently struggling to clear $6,600 and it may correct lower in the short term.
Bitcoin Price Analysis
Yesterday, we saw an upside break above the $6,320 resistance in bitcoin price against the US Dollar. The BTC/USD pair gained traction and it climbed above the $6,450 and $6,510 resistance levels. There was a positive price action developed above the $6,500 level and the 100 hourly simple moving average. The price even tested the $6,600 level where sellers emerged.
The chart indicates that the price tested the $6,600 resistance on two occasions and failed. This means there is a chance of a double top pattern forming near $6,600. On the downside, an initial support is near the $6,510 level. It is close to the 23.6% Fib retracement level of the recent leg from the $6,200 swing low to $6,600 high. Moreover, there is a short term ascending channel in place with support at $6,505 on the hourly chart of the BTC/USD pair. If the pair breaks the channel support, it could decline towards $6,400. The $6,400 support is important since it is the 50% Fib retracement level of the recent leg from the $6,200 swing low to $6,600 high.
Looking at the chart, bitcoin must break the $6,600 resistance soon. If not, the price could correct lower towards $6,510 or $6,400 in the near term. Above $6,600, the price may climb towards $6,720 and $6,750.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is presently positioned nicely above the 60 level.
Major Support Level – $6,400
Major Resistance Level – $6,600
