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Bitcoin price declined sharply after it failed near $6,800-6,820 against the US Dollar. BTC/USD is currently approaching a crucial juncture and it must hold $5,800.
Key Findings:
- Bitcoin price decline found support above a significant pivot area at $6,000.
- Upsides in BTC/USD were capped by a major bearish trend line on the daily chart with current resistance at $6,450.
- The pair has to move back above $6,450 and $6,500 to climb into a bullish zone.
Bitcoin Price Weekly Analysis
Bitcoin price failed on multiple occasions to gain momentum above the $6,800-6,820 resistance area against the US Dollar. The BTC/USD pair started a sharp downside move and broke the $6,650 and $6,450 support levels.
Looking at the 2-hours chart, the price formed an interim high near the $6,819 level and declined by more than $600. It broke the $6,450 support area and spiked below the $6,100 level.
A low was formed at $6,075 before the price started consolidating losses. It recovered above the $6,200 level and traded above the 23.6% Fib retracement level of the last drop from the $6,819 high to $6,075 low.
However, the price failed to gain traction above the $6,350 level and is currently trading near the 21 simple moving average (2-hours). On the upside, there is a short-term connecting bearish trend line with resistance at $6,290. Above this, the price must clear the $6,350 resistance.
Finally, the most important resistance is near $6,450, which is the 50% Fib retracement level of the last drop from the $6,819 high to $6,075 low.
The daily chart of BTC/USD also indicates the importance of $6,450. The last ride in bitcoin price was prevented by a major bearish trend line with current resistance at $6,450.
Therefore, a proper close above $6,450 may perhaps open the doors for more gains. However, the current daily range resistance sits at $6,800, which is the final hurdle for a larger upward move above $7,500 in the medium term.
On the downside, the $6,000 support and the $5,800 range support holds a lot of importance. A break below these won’t be easy considering the current market sentiment and price action around $6,000.
The market data is provided by TradingView, Coinbase.