Bitcoin Price Analysis: BTC/USD Holding Key Supports
Bitcoin price failed to break the $6,410 hurdle against the US Dollar. BTC/USD declined, but it is holding important supports above $6,250.
Important points
- Bitcoin is trading well above the $6,220 and $6,250 support levels.
- BTC/USD is trading inside a contracting triangle with resistance near $6,350 on the 2-hours chart.
- BTC price is positioned nicely and it could rise towards $6,400 if buyers gain traction.
Bitcoin price analysis
Bitcoin price failed to hold gains above the $6,368 resistance zone and declined against the US Dollar. BTC/USD broke the $6,340 support area, but buyers managed to defend the $6,260 and $6,250 support levels.
The 2-hours chart of BTC price indicates that there was a failure to clear the $6,390, $6,400 and $6,410 resistance levels. There was also a spike above the 50% Fib retracement level of the last slide from the $6,536 high to $6,201 low, but buyers failed to hold gains.
The price failed to clear the $6,400 resistance and the 100 simple moving average (2-hours). A short-term top was formed and the price declined below the $6,350, $6,320 and $6,300 supports.
However, the downside move was prevented by the $6,250-6,260 support area. More importantly, it seems like there is a contracting triangle forming with resistance near $6,350. If the price moves higher, and breaks the $6,350 resistance, there could be more gains.
The $6,400 level and the 61.8% Fib retracement level of the last slide from the $6,536 high to $6,201 low at $6,408 are two important hurdles for bitcoin buyers.
A proper close above $6,400-6,410 is needed for buyers to take control and push the price towards the $6,500 and $6,550 levels in the near term. On the other hand, a bearish break below the $6,250 level may perhaps push the price back towards the $6,201 swing low.
It seems like bitcoin price is trading inside a range with support at $6,200 and resistance at $6,400. The next move could be either above $6,400 or below $6,200. The current price action suggests that the price may perhaps test the $6,400 range resistance in the coming sessions.
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