Bitcoin price declined and tested the $6,120 support area against the US Dollar. BTC/USD is currently correcting higher and it could test $6,700-6,750.
- Bitcoin price is slowly rising from the $6,120 swing low and is currently above $6,400.
- BTC/USD is holding an important bullish trend line with support at $6,210 on the daily chart.
- The pair is trading inside an ascending channel with support at $6,470 on the 2-hours chart.
Bitcoin Price Weekly Analysis
Bitcoin price declined further earlier this past week and tested the $6,100-6,120 support area against the US Dollar. The BTC/USD pair is currently correcting higher and is positioned nicely above the $6,400 level.
Looking at the daily chart, the price found support near the $6,100-6,120 support area and later started an upside move. It traded above the $6,350 and $6,400 resistance levels to move into a positive zone.
There was also a break above the 23.6% Fib retracement level of the major drop from the $7,400 swing high to $6,120 swing low. It has opened the doors for more gains towards the $6,680 level and the 25-day simple moving average.
However, there is a key resistance formed near $6,750 and the 50% Fib retracement level of the major drop from the $7,400 swing high to $6,120 swing low. Moreover, there is also a connecting bullish trend line in place on the same chart with resistance at $6,850.
Therefore, if the price continues to trade higher, it could find many sellers near the $6,720, $6,750 and $6,850 levels. On the downside, there is a crucial bullish trend line in place with support at $6,180. Below the trend line, the price could decline sharply towards the $5,800 support.
Dropping down to the 2-hours chart, BTC/USD broke a contracting triangle with resistance at $6,340 to clear the path for buyers. At the moment, the price is trading inside an ascending channel with support at $6,470.
If bitcoin price breaks the channel support, it could correct lower towards the $6,386 and $6,340 support levels. Further below $6,340, the price could test the all-important $6,180 and the trend line support in the near term.
The market data is provided by TradingView, Coinbase.