Bitcoin failed to surpass the $7,000 resistance and declined below $6,500 against the US Dollar. BTC is likely to bounce back as long as it is above $6,000 and the 100 SMA (H4).
- Bitcoin price is currently correcting gains from the $7,000 resistance area.
- The $6,000 region and the 100 simple moving average (4-hours) are important supports.
- There was a break below a major bullish trend line with support at $6,620 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently consolidating losses above the $6,000 and $6,100 levels.
Bitcoin is Approaching Crucial Support
This past week, bitcoin struggled to gain strength above the $6,880 and $7,000 resistance levels against the US Dollar. BTC price topped near the $6,982 level and recently started a fresh decline.
There was a break below the main $6,500 support area to start a substantial decline. Moreover, there was a break below a major bullish trend line with support at $6,620 on the 4-hours of the BTC/USD pair.On the downside, there are a couple of important supports near $6,050 and $6,000. The main support for bitcoin is near the $5,950 level and the 100 simple moving average (4-hours).
If BTC fails to stay above the 100 SMA, there is a risk of a larger decline below $5,800. An immediate support is near $5,750, below which the price is likely to decline towards the $5,500 level.