Bitcoin Price Analysis: BTC/USD’s Resistance Turned Support

Bitcoin price traded higher towards $6,800 against the US Dollar. BTC/USD was rejected near $6,800 and it is currently testing the previous resistance (now support) at $6,580.

Important points

• Bitcoin moved down sharply and trimmed its gains from the $6,814 high.
• BTC/USD is finding strong bids near the $6,580 level and the 100 simple moving average (2-hours).
• BTC price remains supported above the $6,580 and $6,530 levels.

Bitcoin price analysis

Bitcoin price rallied recently after it broke a major resistance near $6,520 against the US Dollar. BTC/USD traded above the $6,650 and $6,750 levels and tested the $6,800 resistance zone.

The 2-hours chart of BTC price indicates that sellers were aggressive near the $6,800 level. The price traded as high as $6,814 and later declined sharply to trim most of its gains.

During the decline, there was a break below the $6,680 support and the 50% Fib retracement level of the last upward move from the $6,439 low to $6,814 high. However, the price is now approaching key supports near the $6,580 level.

At the moment, the 100 simple moving average (2-hours) is acting as a strong support near the $6,580-6,600 zone. Moreover, the 61.8% Fib retracement level of the last upward move from the $6,439 low to $6,814 high is also providing support.

Below the mentioned Fib level, there is a connecting bullish trend line with support at $6,540 level. If there is a downside break below the trend line, the price may move back in a bearish zone towards the $6,420 level.

On the other hand, if bitcoin bounces back from the 100 SMA, the price may resume its upside above $6,650. To the topside, there are key resistances formed near the $6,780, $6,800 and $6,820 levels. A break above these is needed for a push towards the $7,000 level.

Overall, bitcoin is trading in a positive zone above the $6,540 level and the 100 SMA. Buyers need to protect losses below $6,580 and 6,540. If not, there is a risk of BTC/USD declining back towards the $6,300 level in the near term.