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 AnalysisYesterday, 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
