Bitcoin price tumbled below $6,500 and trimmed all its gains against the US Dollar. BTC/USD remains at a risk of more declines below the last low at $5,750.
- Bitcoin price failed to hold gains above $7,000 and declined sharply below $6,500.
- BTC/USD broke a major bullish trend line with support at $6,850 on the daily chart.
- There are many resistances formed like $6,320 and $6,480 on the 2-hours chart.
Bitcoin Price Weekly Analysis
Bitcoin price struggled to hold gains above the $7,000 support and started a major downside move against the US Dollar. The BTC/USD pair dropped sharply and broke the $6,800 and $6,500 supports levels to enter a bearish territory.
Looking at the daily chart, the price broke the 61.8% Fib retracement level of the last wave from the $5,777 low to $8,484 high and entered into a bearish zone. More importantly, there was a break below a major bullish trend line with support at $6,850.
After a close below the trend line support and the $6,800 support, the price tumbled and cleared the $6,300 and $6,200 support levels. At the moment, the price is testing the 88.6% Fib retracement level of the last wave from the $5,777 low to $8,484 high at 6,080.
Should there be a break and close below $6,000, the price is likely to test the last swing low at $5,777. Any further declines could push the price to a new yearly low below the $5,750 level. The next key supports are sitting near the $5,500 and $5,000 level.
On the upside, the 2-hour chart of BTC price indicates that there are many resistances formed like $6,320 and $6,480. An initial barrier is near a bearish trend line at $6,320 and the 21 simple moving average (2-hours).
Above $6,320, there is another bearish trend line positioned near the $6,480-6,520 zone. Therefore, any upsides from the current levels in bitcoin price are likely to face sellers near $6,320 or $6,480.
To sum up, the recent bearish break in BTC/USD has pushed the price in a negative zone, which could result in more declines below $6,000 in the near term.
The market data is provided by TradingView, Coinbase.