Bitcoin price formed a solid support base around $5,800 and recovered against the US Dollar. BTC/USD is now trading well above the $6,000 resistance with a few positive signs.
- Bitcoin price jumped sharply after forming a base around $5,800 and $5,750.
- There was a break above a crucial bearish trend line with resistance at $6,000 on the 2-hours chart of BTC/USD.
- The pair is currently attempting a close above a significant bearish trend line on the daily chart at $6,300.
Bitcoin Price Weekly Analysis
Bitcoin price extended its decline this past week towards the $5,800-5,700 zone against the US Dollar. The BTC/USD pair managed to stay above the $5,700 level and formed a decent support base for an upward wave.
Looking at the 2-hours chart, the price formed a bottom and jumped above a few key resistances such as $6,000 and $6,200. More importantly, there was a break above a crucial bearish trend line with resistance at $6,000 on the same chart.
The price gained traction above the $6,200 resistance and the 21 simple moving average. It succeeded in clearing the 50% Fib retracement level of the last decline from the $6,827 high to $5,777 low.
These are positive signs and suggests that the price was rejected from the $5,800 support zone. At the moment, the price is consolidating near the 61.8% Fib retracement level of the last decline from the $6,827 high to $5,777 low.
It may perhaps correct a few points in the short term towards the $6,250 and $6,000 levels, which are likely to act as supports. Should there be more declines below $6,200, the price may resume its slide.
On the other hand, a break above the $6,400-6,500 resistance zone could open the doors for more gains in the near term. The next target for buyers might be the last swing high at $6,800.
Looking at the daily chart of bitcoin price, it seems like BTC/USD is attempting a close above a significant bearish trend line at $6,300. If buyers succeed in a close above $6,300, it will most likely set the pace for an upward acceleration in the near term.
The market data is provided by TradingView, Coinbase.