- Bitcoin price declined sharply and trimmed most of its yesterday’s gains against the US Dollar.
- There was a break below a major bullish trend line with support at $6,570 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair revisited the $6,220 support area and later recovered above the $6,300 level.
Bitcoin price declined sharply below $6,550 against the US Dollar. BTC/USD is forming a double bottom pattern near the $6,220 level.
Bitcoin Price Analysis
Yesterday, we saw a solid upward move above the $6,550 level in bitcoin price against the US Dollar. However, the BTC/USD pair was rejected near the $6,923 level and later it declined sharply. There was a sharp downside move and the price fell sharply below the $6,620 and $6,550 support levels. The price even settled below the $6,500 level and the 100 hourly simple moving average.
Moreover, there was a break below a major bullish trend line with support at $6,570 on the hourly chart of the BTC/USD pair. It seems like the pair trimmed most of its gains above the $6,620 level and reversed back below $6,300. The pair retested the $6,220 support zone where buyers emerged. The price traded higher and moved above the 23.6% Fib retracement level of the last decline from the $6,923 high to $6,213 low. However, the upside move is facing sellers near the $6,484 level and the 100 hourly SMA. Above this, the next resistance is $6,568 and the 50% Fib retracement level of the last decline from the $6,923 high to $6,213 low.
Looking at the chart, if bitcoin seems to be forming a double bottom pattern near the $6,220 level. Therefore, if the price breaks the $6,568 resistance it could accelerate higher. On the flip side, a break below $6,220 could push the price towards $6,000.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD has just moved into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is still below the 50 level.
Major Support Level – $6,220
Major Resistance Level – $6,568