Bitcoin Price Watch: BTC/USD is Following Bearish Bias Below $6,540

Story by: AAYUSH JINDAL

There was a solid rise above the $6,400 level in bitcoin price against the US Dollar. The BTC/USD pair recovered above the $6,490 and $6,500 resistance levels. There was also a break above the 50% Fib retracement level of the downside move from the $6,660 swing high to $6,315 swing low. However, the upside move faced a strong resistance near the $6,540-50 region.

More importantly, the 61.8% Fib retracement level of the downside move from the $6,660 swing high to $6,315 swing low prevented gains. It seems like there is an important resistance formed near $6,540 and two bearish trend lines on the hourly chart of the BTC/USD pair. Additionally, the 100 hourly simple moving average is also positioned near $6,540 to act as a barrier for buyers. If bitcoin buyers succeed in surpassing the $6,540, $6,550 and the 100 hourly SMA, there could be more gains. The next resistance is at $6,660, followed by the $6,750 level.

Looking at the chart, bitcoin price is clearly following a bearish bias below $6,540. On the downside, an initial support is at $6,400. If there is a break below the $6,400 support, the price may decline towards the $6,350 support. The next key support is near the recent swing low at $6,315.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slightly in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI moved below the 50 level.

Major Support Level – $6,350

Major Resistance Level – $6,540

Original story by: https://tinyurl.com/ybcegr9z

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