Bitcoin Price Watch: BTC/USD Recovery Could be Limited
- Bitcoin price found support near $ 6,620 after a major decline against the US Dollar.
- Yesterday’s highlighted important bearish trend line was breached with resistance at $ 6,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently correcting higher towards a few important resistances such as $ 7,000 and $ 7,200.
Bitcoin price is recovering from the $ 6,600 support area against the US Dollar. BTC/USD might correct further in the near term, but it could face hurdles around $ 7,200.
Bitcoin Price Analysis
Yesterday, we saw a major downside move in bitcoin price below the $ 7,000 handle against the US Dollar. The BTC/USD pair declined towards the $ 6,600 level and formed a low at $ 6,628. Later, an upside recovery was initiated and the price corrected above the $ 6,700 level. It also traded a few points above the 23.6% Fib retracement level of the last decline from the $ 7,600 swing high to $ 6,628 low.
Moreover, yesterday’s highlighted important bearish trend line was breached with resistance at $ 6,700 on the hourly chart of the BTC/USD pair. In the short term, there could be more gains towards the $ 7,200 level. However, there are many resistances for buyers around the $ 7,000 and $ 7,200 levels. The 50% Fib retracement level of the last decline from the $ 7,600 swing high to $ 6,628 low is also positioned near $ 7,170 to prevent gains in the near term. Should there be an upside break above $ 7,100, the next hurdle could be around the 100 hourly simple moving average.
Looking at the chart, the price is correcting higher, but it could face a lot of hurdles around the $ 7,200 level. On the downside, supports are seen at $ 6,700 and $ 6,600.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is currently moving in the bullish zone with a positive direction.
Hourly RSI (Relative Strength Index) – The RSI managed to move above the 50 level with limited strength.
Major Support Level – $ 6,600
Major Resistance Level – $ 7,200
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