Bitcoin is up more than 15% and it broke the $6,000 resistance against the US Dollar. However, BTC price is now facing a huge barrier near the $6,400 and $6,500 levels.
- Bitcoin managed to rise above the $5,800 and $6,000 resistance levels against the US Dollar.
- The price is up more than 15% and it is now approaching the key $6,500 resistance.
- There is a major bearish trend line forming with resistance near $8,000 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The bulls are likely to fail near the key $6,400 and $6,500 resistance levels.
Bitcoin Price is Facing Huge Barrier
After a massive decline, bitcoin found support near the $4,000 level. BTC price started a decent recovery above the $4,500 and $5,000 resistance levels. Later, it started consolidating in a range above the $5,000 support.
Recently, it gained pace above the $5,500 and $5,800 resistance levels. The price even surpassed the 23.6% Fib retracement level of the last key decline from the $9,203 high to $3,919 low.
It is now trading nicely above the $6,000 resistance level. However, there are a few key barriers near the $6,400 and $6,500 levels (the previous breakdown zone). The 50% Fib retracement level of the last key decline from the $9,203 high to $3,919 low is also near the $6,550 level.
Bitcoin bulls are likely to face a strong selling interest near the $6,400 and $6,500 levels. If they succeed in gaining pace above the $6,500 level, the price could recover further towards the $7,000 resistance.
There is also a major bearish trend line forming with resistance near $8,000 on the daily chart of the BTC/USD pair. A close above $8,000 is needed for a medium term trend change.
Just Another Correction?
The recent 15% could be just another correction in bitcoin. If it fails to gain strength above the $6,500 resistance, there are chances of a fresh decline.
An initial support is near the $6,000 level (the recent breakout zone). The main support is now near the $5,500 level, below which the bears are likely to aim a test of the $5,000 support.
Overall, the price is reaching a huge barrier near $6,500 and it could either continue towards $8,000 or start a fresh decline towards $5,000.
Technical indicators:
Daily MACD – The MACD is likely to move into the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering towards the 40 level.
Major Support Levels – $6,000 followed by $5,500.
Major Resistance Levels – $6,400, $6,500 and $7,000.
