Bitcoin Price (BTC) In Corrective Increase But Facing Hurdles
Bitcoin price tumbled and broke many supports near $7,000. BTC to USD traded as low as $6,515 and it is currently correcting higher, but facing hurdles.
Key Takeaways: BTC/USD
- Bitcoin price declined more than $2,000 in the past three weeks against the US Dollar.
- BTC/USD is currently recovering but facing many hurdles near $6,940, $7,020, $7,300, and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is now trading well below $150.00 and ripple traded below the $0.2120 support area.
Bitcoin Price Analysis
In the past few days, there were steady losses in bitcoin price below the $7,990 and $7,350 support levels. The bears even pushed the price below the main $7,020 support area.
Looking at the 2-hours chart, bitcoin even settled below the $7,000 support area and the 50 simple moving average (2-hours, purple). Finally, the price dived below the $6,840 support area and traded close to the $6,500 level.
A new monthly low was formed near $6,515 and the price is currently correcting higher. It broke the $6,700 resistance area, plus the 23.6% Fib retracement level of the drop from $7,361 to $6,515.
At the outset, the price is testing the $6,940 and $6,950 resistance levels. Besides, the 50% Fib retracement level of the drop from $7,361 to $6,515 is also a major hurdle near the $6,950 level.
Moreover, there is a major bearish trend line in place with resistance near $7,020 on the 2-hours chart. Therefore, bitcoin price is clearly facing many hurdles near $6,940, $7,020, $7,300, and another bearish trend line on the same chart.
The main resistance is near the $7,350 level and the 50 simple moving average (2-hours, purple). A successful close above the $7,350 level is needed for upside continuation.
If not, the price is likely to resume its decline from $6,950 or $7,020. On the downside, an initial support is near the $6,800 level. If bitcoin price fails to stay above the $6,800 support, there is a risk of a fresh decline towards $6,500 or even $6,420 in the near term.