Key Points Bitcoin price started an upward correction from the $6,131 low against the US Dollar. There was a break above a major bearish trend line with resistance at $6,400 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could move further above the $6,600 level if buyers remain in action in the near term.
Bitcoin price is showing recovery signs above the $6,400 level against the US Dollar. BTC/USD may perhaps continue to recover towards the $7,000 level.
Bitcoin Price Analysis
There was a solid buying interest emerged above the $6,000 level in bitcoin price against the US Dollar. The BTC/USD pair formed a low at $6,131 and started an upward move. It gained pace and broke the $6,200 and $6,300 resistance levels. There was also a break above the 50% Fib retracement level of the last drop from the $6,900 swing high to $6,130 swing low.
More importantly, there was a break above a major bearish trend line with resistance at $6,400 on the hourly chart of the BTC/USD pair. The pair is currently flirting with the $6,650 level and the 100 hourly simple moving average. Should there be an upside break above $6,800, there could be more gains in the near term. Furthermore, a break above the 76.4% Fib retracement level of the last drop from the $6,900 swing high to $6,130 swing low may perhaps clear the way for $7,000.
Looking at the chart, the price is currently trading in a range around the $6,600 level. There may be a slight downward reaction towards the $6,500 level, but buyers are likely to take a stand. Below $6,500, the next major support is around the $6,400 level. On the upside, the $7,000 level is a major barrier for more gains.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI has settled above the 50 level.