Bitcoin price traded higher and tested an important resistance near $6,800 against the US Dollar. BTC/USD was rejected and it is currently declining towards the $6,310 support.
- Bitcoin price failed to clear an important resistance zone near $6,780-6,800.
- BTC/USD broke a major bullish trend line with support at $6,555 on the 2-hours chart.
- The pair failed to break a significant bearish trend line with resistance at $6,800 on the daily chart.
Bitcoin Price Weekly Analysis
During the past few sessions, there were positive moves above the $6,450 level in bitcoin price against the US Dollar. The BTC/USD pair climbed higher and broke the $6,640 and $6,740 resistance levels.
Looking at the daily chart, the price ran into a major resistance zone near $6,800. There seems to be a strong barrier formed near the $6,770-6,800 zone. The 50% Fib retracement level of the last major decline from the $7,405 high to $6,103 low is also near the same levels.
More importantly, there is a major bearish trend line in place with resistance at $6,800 on the same chart. The price was clearly rejected around the $6,770-6,800 zone and it is currently moving lower.
The 25-day simple moving average is acting as a support, below which the price could extend the decline towards the next support at $6,155. Moving down to the 2-hours chart, BTC/USD recently broke a major bullish trend line with support at $6,555.
Additionally, there was a break below the 50% Fib retracement level of the last wave from the $6,319 low to $6,789 high. Bitcoin is now trading well below $6,600 and the 25 simple moving average (2-hours).
Therefore, there are chances of more declines in the near term towards the $6,400-6,410 support area. An intermediate support is near $6,430 and the 76.4% Fib retracement level of the last wave from the $6,319 low to $6,789 high.
Below the $6,400 support, there is a risk of an extended slide towards the $6,155 support. Overall, the current price is slightly bearish as long as the price is below $6,700 and $6,800.
The market data is provided by TradingView, Coinbase.