Bitcoin price formed a base above $6,100 against the US Dollar. BTC/USD is recovering, and it could trade higher, but upsides are likely to be capped by $6,600, $6,800 and 100 SMA.
There were further declines below the $6,200 support in bitcoin price against the US Dollar. The BTC/USD pair traded as low as $6,131 before forming a base for an upside move. The price started an upward correction and traded above the $6,300 level. There was a break above the 23.6% Fib retracement level of the last decline from the $6,900 high to $6,131 low.
At the moment, the price is trading with a positive bias above $6,300. However, there are many hurdles on the upside near the $6,500, $6,600 and $6,800 levels. More importantly, the BTC/USD pair is currently attempting to break a key bearish trend line with resistance at $6,450 on the hourly chart. Furthermore, the 50% Fib retracement level of the last decline from the $6,900 high to $6,131 low could also act as a resistance for bitcoin buyers. Finally, above $6,600, the most important hurdle is near $6,700 and the 100 hourly simple moving average.
Looking at the chart, the price may correct higher above the $6,600 level in the near term. However, the price may perhaps face a heavy selling interest below $6,800 and the 100 SMA. On the downside, supports are at $6,300 and $6,150.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD has moved back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI also managed to move above the 50 level.
Major Support Level – $6,300
Major Resistance Level – $6,800