Key Points
- Bitcoin price is trading above the $6,385 and $6,355 support levels against the US Dollar.
- There is a crucial contracting triangle formed with resistance at $6,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could slide towards the $6,355 support if there is a break below $6,400 and $6,385.
Bitcoin price is struggling to move above $6,420 against the US Dollar. BTC/USD could react to the downside and it might even rested the $6,355 support.
Bitcoin Price Analysis
During the past three sessions, there were mostly range moves above the $6,385 support in bitcoin price against the US Dollar. The BTC/USD pair formed a decent support near the $6,385 level, but it struggled to gain traction above the $6,420 and $6,430 levels. The last swing low was formed at $6,386 before the price moved higher. It spiked above the 50% Fib retracement level of the last decline from the $6,449 high to $6,386 low.
However, there was no close above the $6,425 level. The price was also rejected near the 61.8% Fib retracement level of the last decline from the $6,449 high to $6,386 low. At the moment, the price is trading near the $6,400 level and below the 100 hourly simple moving average. More importantly, there is a crucial contracting triangle formed with resistance at $6,420 on the hourly chart of the BTC/USD pair. Therefore, the pair is likely to make the next move either above $6,420 or below $6,385. If there is an upside break, the price may revisit the $6,450 level.
Looking at the chart, bitcoin price is under pressure below $6,420 and the 100 hourly SMA. If there is a downside break, the price is likely to extend losses towards the $6,355 support.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is about to move into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just below the 50 level.
Major Support Level – $6,385
Major Resistance Level – $6,420