Bitcoin price is trading nicely above the $6,400 and $6,220 support levels against the US Dollar.
It is facing a major hurdle on the upside near the $6,840 and $7,000 levels.
There is a major contracting triangle forming with resistance near $6,820 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
The pair could correct a few points, but it is likely to remain well supported near $6,400 and $6,300.
Bitcoin price is trading in a positive zone above the $6,400 level against the US Dollar. However, BTC must climb above the $7,000 resistance level to continue higher in the near term.
Bitcoin Price Analysis
In the past few days, there were positive moves in bitcoin price above the $6,000 level against the US Dollar. BTC even surpassed the $6,200 resistance and settled above the 55 simple moving average (4-hours).
It traded as high as $6,931 before correcting lower. The price retested the $5,700 support area and traded as low as $5,665. It is currently rising and trading above the $6,220 resistance level.
There was a break above the 50% Fib retracement level of the downward move from the $7,931 high to $5,665 low. However, the price seems to be facing a lot of hurdles on the upside, starting with $6,800.
It is currently consolidating near the 76.4% Fib retracement level of the downward move from the $7,931 high to $5,665 low. Besides, there is a major contracting triangle forming with resistance near $6,820 on the 4-hours chart of the BTC/USD pair.
If there is an upside break above the triangle resistance, the price could rise above the $6,931 swing high. In the mentioned case, the price may perhaps rise above the $7,000 resistance and continue higher.
The next key resistance is near the $7,300 area and the 1.236 Fib extension level of the downward move from the $7,931 high to $5,665 low. Any further gains could lead the price towards the $7,500 resistance area.
On the other hand, the price could decline from the $6,800 resistance level. An initial support is near the $6,485 level, followed by the triangle support at $6,300. If there is a downside break below $6,300, the price might even slide to $6,000.
Looking at the chart, bitcoin price is clearly approaching a crucial upside break above $6,800 and $7,000. If it fails, there is a risk of a fresh decline to $6,000.
4 hours MACD – The MACD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is currently rising and it is well above the 50 level.
Key Support Levels – $6,500 and $6,300.
Key Resistance Levels – $6,800, $7,000 and $7,300.
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