- Bitcoin price is declining and approaching the next bearish target of $6,500 against the US Dollar.
- The price is down close to 10% and it seems like the bears are targeting $6,500 or $6,400.
- There is a new connecting bearish trend line forming with resistance near $7,010 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The bulls are likely to take a stand near the main $6,500 support (the medium term outlook bearish target).
Bitcoin price is approaching the key $6,500 support area against the US Dollar. There are high chances of BTC finding bids near $6,500 and starting an upside correction.
Bitcoin Price Analysis
This past week, we discussed the chances of more downsides below $7,500 in bitcoin price against the US Dollar. BTC did decline and broke the first key bearish target near the $7,000 level.
Moreover, the price broke the $6,800 support zone and settled well below the 100 hourly simple moving average. It opened the doors for more losses below $6,700 and the price traded as low as $6,575 (close to the main bearish target of $6,500 as discussed in the last medium term outlook).
At the moment, the price is consolidating losses above $6,600. Besides, it is testing the 23.6% Fib retracement level of the recent downward move from the $7,279 high to $6,575 low.
On the upsides, there are many resistances near the $6,880, $6,900 and $6,930 levels. The first major resistance is near the $6,930 level since it is close to the 50% Fib retracement level of the recent downward move from the $7,279 high to $6,575 low.
Additionally, there is a new connecting bearish trend line forming with resistance near $7,010 on the hourly chart of the BTC/USD pair. Therefore, bitcoin price needs to climb above the $6,930 and $7,000 resistance levels to start a decent recovery.
The next major resistance is near the $7,360 level and the 100 hourly simple moving average. Conversely, the price may perhaps continue to move down below $6,600.
The main support is near the $6,500 level, where the bulls are likely to put up a strong fight. Any further losses could decrease the chances of a short term correction and the price might decline towards $6,400 or $6,200.
Looking at the chart, bitcoin price is clearly struggling to correct above $6,800. Thus, there remains a risk of another slide or spike towards $6,500 and $6,400 before an upside correction.
Technical indicators:
Hourly MACD – The MACD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving further into the bearish zone.
Major Support Levels – $6,500 followed by $6,400.
Major Resistance Levels – $6,880, $6,920 and $7,000.
