Bitcoin Price Watch: BTC/USD’s Trend Overwhelmingly Bullish

Key Points

• Bitcoin price surged higher and broke a crucial resistance near $6,380 against the US Dollar.
• There is a new key bullish trend line forming with support at $6,480 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The BTC/USD pair is currently correcting lower, but it is likely to find support near $6,640 and $6,600.

Bitcoin price surged above $6,700 against the US Dollar. BTC/USD is now placed in an uptrend with supports near $6,600 and $6,540 on the downside.

Bitcoin Price Analysis

Bitcoin price settled above a key barrier at $6,300 against the US Dollar. It opened the doors for more gains and the BTC/USD pair surged above the $6,380 and $6,600 resistance levels. The upside move was such that the price even broke the $6,700 resistance. A high was formed at $6,749 and the price is currently correcting lower. On the downside, there are many supports starting with the $6,650 level.

The 23.6% Fib retracement level of the last wave from the $6,318 low to $6,749 high is positioned at $6,648 and is likely to hold declines. Should there be a break below $6,648, the price may perhaps trade towards the $6,600 support. More importantly, there is a new key bullish trend line forming with support at $6,480 on the hourly chart of the BTC/USD pair. The same trend line currently around the 50% Fib retracement level of the last wave from the $6,318 low to $6,749 high. Therefore, any major dips from the current levels are likely to find bids near $6,600 and $6,540.

Looking at the chart, the price clearly settled above $6,600 and the 100 hourly simple moving average. On the upside, a break above the $6,750 high could set the path for a move towards $7,000.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is correcting lower from the overbought levels.

Major Support Level – $6,600

Major Resistance Level – $6,750