Key Points
- Bitcoin price mostly traded in a range above the $6,300 support area against the US Dollar.
- There is a crucial breakout triangle pattern formed with resistance near $6,540 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could dip a few points towards $6,380, but it is likely to break the triangle for more gains.
Bitcoin price is positioned for the next move against the US Dollar. BTC/USD will most likely accelerate gains above the $6,540 and $6,620 levels in the near term.
Bitcoin Price Analysis
After bitcoin price failed to break the $6,620 resistance against the US Dollar, it started consolidating. The BTC/USD pair mostly traded in a range above the $6,300 support area with swing moves. The last swing low was $6,302 before the price moved above $6,400 and the 100 hourly simple moving average. The price also broke the 50% Fib retracement level of the last drop from the $6,618 high to $6,302 low.
However, the upside move was capped by the $6,540 resistance. Moreover, the 76.4% Fib retracement level of the last drop from the $6,618 high to $6,302 low also acted as a resistance. At the moment, the price is trading above the $6,420 support and the 100 hourly SMA. More importantly, there is a crucial breakout triangle pattern formed with resistance near $6,540 on the hourly chart of the BTC/USD pair. In the short term, there could be a downside reaction towards the $6,360 and $6,320 levels. Having said that, the current price action suggests that the price is likely to break the triangle resistance at $6,540 to extend gains.
Looking at the chart, if bitcoin breaks $6,540, it has to surpass the $6,620 resistance to retain gains. If not, the price may perhaps drop back towards $6,400 and $6,300.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently placed well above the 50 level.
Major Support Level – $6,320
Major Resistance Level – $6,540
