Bitcoin Price Watch: Break Below $6,390 Could Accelerate Losses
- Bitcoin price is trading above the important $6,390 support area against the US Dollar.
- Yesterday’s highlighted major bullish trend line is intact with support at $6,390 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price must stay above the $6,390 support to avoid a downside break.
Bitcoin price is struggling to stay above $6,390 and $6,400 against the US Dollar. BTC/USD must clear the $6,430 and $6,450 resistance to climb higher.
Bitcoin Price Analysis
There was a slow and steady decline from the $6,450 swing high in bitcoin price against the US Dollar. The BTC/USD pair faced an increased selling pressure and declined below the $6,430 and $6,410 levels. There was also a close below the $6,430 level and the 100 hourly simple moving average. Besides, there was a spike below the $6,390 support and the price traded as low as $6,368.
Later, the price jumped back above $6,390 and it is currently consolidating. It tested the 50% Fib retracement level of the recent decline from the $6,450 high to $6,368 low. However, there was no major upside move above the $6,430 zone. A break above the $6,430 level and the bearish trend line at $6,428 is needed for a decent upward move. The next immediate resistance is near the 76.4% Fib retracement level of the recent decline from the $6,450 high to $6,368 low. On the downside, the $6,390 level is a solid support. More importantly, yesterday’s highlighted major bullish trend line is intact with support at $6,390 on the hourly chart of the BTC/USD pair.
Looking at the chart, bitcoin price is currently at a risk of a downside break below the $6,390 support. The next main support for buyers is near the $6,350-52 zone.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is currently in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is well below the 50 level.
Major Support Level – $6,390
Major Resistance Level – $6,430