Bitcoin Just Rejected $6,600 and Its Vulnerable To a Short-Term Correction
Bitcoin2020/03/31 07:28 by Aayush Jindal
Bitcoin is up more than 8% and it broke the $6,500 resistance area against the US Dollar. BTC price is now struggling to clear $6,600 and it could correct lower in the short term.
Bitcoin gained bullish momentum above the $6,200 and $6,400 levels against the US Dollar.
The price topped near the $6,640 level and it is currently correcting lower.
There is a connecting bullish trend line forming with support near $6,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower towards the $6,280 area if it breaks the trend line support.
Bitcoin Gains 8%
After a successful close above the $6,000 area, bitcoin price formed a support base against the US Dollar. As a result, BTC price started a steady increase above the $6,200 resistance and the 100 hourly simple moving average.
The price gained pace and traded above the $6,400 pivot area. It is up more than 8% and it even climbed above the $6,500 resistance. A high is formed near the $6,641 level and it seems like the price is struggling to gain strength above $6,600.
Bitcoin is currently correcting lower and trading below the $6,500 level. It broke the 23.6% Fib retracement level of the recent rally from the $5,846 low to $6,641 high.
On the downside, an initial support is near the $6,400 area. There is also a connecting bullish trend line forming with support near $6,420 on the hourly chart of the BTC/USD pair.
Bitcoin Price
Below the trend line support, the price could test the $6,300 area and the 100 hourly SMA. The main support seems to be forming near the $6,240 level. It is close to the 50% Fib retracement level of the recent rally from the $5,846 low to $6,641 high.
If the bulls fail to protect the $6,300 and $6,240 levels, there is a risk of another bearish wave. In the mentioned bearish case, the price could dive towards the $6,000 level.
More Upsides?
If bitcoin remains stable above $6,400 or $6,300, it could make another attempt to gain strength above the $6,600 resistance area.
A successful close above the $6,600 level and a follow through above $6,640 may perhaps spark a decent upward move towards the $6,800 and $7,000 resistance levels.
Technical indicators:
Hourly MACD – The MACD is currently losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower towards the 50 level.
Major Support Levels – $6,400 followed by $6,300.
Major Resistance Levels – $6,600, $6,640 and $6,800.
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
1 Like(s)
You should also read...
Bitcoin11/05/20 05:38 by Aayush Jindal
This Simple Technical Pattern Could Resend Bitcoin Price Above $9,000
Bitcoin declined heavily from the $10,000 resistance against the US Dollar. BTC is currently correcting higher and it seems like the bulls are likely to push the price back above $9,000.
Bitcoin foun... Read More
Bitcoin21/07/20 05:58 by Aayush Jindal
This Technical Pattern Suggests Bitcoin’s $9K Deadlock Could Be Over Soon
Bitcoin is trading above the $9,150 support against the US Dollar. BTC seems to be preparing for a major increase if it succeeds in clearing the $9,200 resistance zone.
Bitcoin is still struggling to... Read More
Altcoins17/09/20 05:58 by Aayush Jindal
Bitcoin Price Holds Strong Above $10,800: A Firm Case for Upside
Bitcoin price climbed further higher above the $11,000 resistance against the US Dollar. BTC is currently correcting gains, but dips are likely to remain supported near $10,800.
Bitcoin extended its ... Read More
Bitcoin18/09/20 06:08 by Aayush Jindal
Technicals Suggest Bitcoin Looks Ready For Another Leg Higher Over $11K
Bitcoin price corrected lower, but it found support near the $10,750 zone against the US Dollar. BTC is currently rising and it looks ready for another break above the $11,000 resistance.
Bitcoin is ... Read More
Altcoins13/10/20 06:08 by Aayush Jindal
TA: Bitcoin Just Saw Key Technical Correction, But 100 SMA Is Still Strong
Bitcoin price extended its rise above the $11,500 resistance against the US Dollar. BTC is correcting lower from $11,700, but it is likely to find support near the 100 hourly SMA.
Bitcoin broke the k... Read More