Bitcoin prepares for short-term selling if it crosses the $6,550 mark
Bitcoin is showing signs of an upside correction from the $6,761 level.
A few important hurdles are forming on the upside near the $6,955 and $7,030 levels.
There is a major bearish trend line forming with resistance near $7,030 on the hourly chart of the BTC/USD pair (data from Kraken).
The trading pair can continue to decline towards the $6,550 support, where bulls are likely to emerge
Bitcoin Faces Barriers
We saw Bitcoin price drop 5% below the $7,000 support yesterday. BTC even broke the $6,800 support and the 100 hourly simple moving average.
The coin is currently trading at a low of $6,761 and has a break above the 23.6% Fib retracement level from the $7,295 high to $6,761 low.
An initial resistance on the upside is seen near $6,955 (the recent breakout area). The first major resistance is near the $7,000 and $7,030 levels. There is also a major bearish trend line forming with resistance near $7,030 on the hourly chart of the BTC/USD pair.
The trend line coincides with the 100 hourly simple moving average at $7,035. Additionally, the 50% Fib retracement level from the $7,295 high to $6,761 low is near the $7,028 level.
If there is a price correction, Bitcoin bulls on the primexbt exchange will likely struggle near the $7,000 and $7,030 levels. A successful close above the trendline, 100 hourly SMA and $7,050 could open the door for a fresh increase. The next key hurdle above $7,050 is near the $7,200 level.
Bitcoin Decisive Support Line
If Bitcoin fails to rise further, it risks falling to $6,800 and $6,761. The next major support is near the $6,555 level, where the bulls are likely to take a stand.
If the bulls have trouble keeping the price above the critical support at $6,555, there is a risk of a sharper drop towards the $6,200 and $6,000 support levels in the near term.
Technical indicators:
Hourly MACD – The indicator is currently losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) - The RSI for BTC/USD is currently near the 50 level.
Critical Support Levels - $6,750 followed by $6,555.
Critical resistance levels - $6,960, $7,030 and $7,200.
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