Bitcoin price failed to stay above the $6,600 support and declined against the US Dollar. BTC/USD is under a lot of pressure and it could resume its decline after a correction.
- Bitcoin price is decline and tested the $6,000-6,040 support area.
- BTC/USD broke a major connecting support trend line at $6,330 on the 2-hours chart.
- The pair traded as low as $6,037 and it is currently correcting higher towards the $6,330 resistance.
Bitcoin Price Weekly Analysis
Looking at the daily chart, the price made a false move above the $6,680 level and a crucial bearish trend line. It seems like the price failed once again to break the 50% Fib retracement level of the last decline from the $7,416 high to $6,112 low.
The price declined sharply and traded below the $6,620 support and the 25-day simple moving average. The decline was such that the price trimmed most of its gains and traded towards the major support near the $6,000-6,040 area.
Moving down to the 2-hours chart, BTC/USD broke a major connecting support trend line at $6,330 to move into a bearish zone. It traded as low as $6,037 and it is currently correcting higher.
It has moved above the 23.6% Fib retracement level of the last decline from the $6,680 high to $6,037 low. However, the $6,210 level and the 25 simple moving average (2-hours) are acting as hurdles for buyers.
On the upside, there is a strong resistance formed near $6,330 and the 50% Fib retracement level of the last decline from the $6,680 high to $6,037 low.
As long as bitcoin price is below the $6,330 level and the same bearish trend line on the daily chart, there is a risk of more losses below $6,040 in the near term. The next major supports are at $5,800 and $5,650.
The market data is provided by TradingView, Coinbase.