Bitcoin price formed a key support near $6,100 and recovered well against the US Dollar. BTC/USD is now following a bullish path with resistances near $6,825 and $6,940.
- Bitcoin price started a decent upward move from the $6,137 bottom.
- There is a crucial ascending channel formed with support at $6,580 on the 4-hours chart of BTC/USD.
- Resistances on the upside are seen near $6,825, $6,940 and $7,060.
Bitcoin Price Weekly Analysis
Bitcoin price was under a lot of pressure earlier this month after it failed to move past $7,700 against the US Dollar. The BTC/USD pair dropped significantly and broke the $7,000 and $6,500 support levels.
Looking at the 4-hours chart, the price traded towards the $6,000 handle and found bids around $6,140. A low was formed at $6,137 and the price started a decent upward recovery.
It moved above the $6,500 resistance to start a substantial recovery. Bitcoin buyers succeeded in clearing the 23.6% Fib retracement level of the last major decline from the $7,741 high to $6,137 low.
More importantly, there was a close above the $6,500 pivot level and the 21 simple moving average. However, the upside move was capped by the $6,800-6,825 resistance zone. Additionally, there was no close above the 38.2% Fib retracement level of the last major decline from the $7,741 high to $6,137 low.
At the outset, the price is consolidating below $6,800 and is preparing for the next move. The current price action is positive and it seems like bitcoin could accelerate gains above $6,825 in the near term.
Above $6,825, the next resistance is near the 50% Fib level of the decline at $6,940. Finally, the last line of defense for sellers is close to the previous support at $7,060.
Should there be a downside correction, the price is likely to find support near the $6,600 level. There is also a crucial ascending channel formed with support at $6,580 on the same chart.
Overall, there are many positive signs emerging and if bitcoin surpass $6,825, it could move further up in the bullish zone.
The market data is provided by TradingView, Coinbase.