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Bitcoin Poised For Short Term ‘Sell’ as Buyers Take Last Stand at $6,550

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Bitcoin is currently consolidating above the $6,760 low against the US Dollar. BTC price could correct higher, but upsides are likely to face hurdles near $6,955 or $7,030. Bitcoin is showing signs of an upside correction from the $6,761 low against the US Dollar. A few key 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 feed from Kraken). The pair could continue lower towards the $6,550 support area, where the bulls are likely to emerge. Bitcoin Facing Hurdles Yesterday, we saw a 5% decline in bitcoin price below the $7,000 support area against the US Dollar. BTC even broke the $6,800 support level and the 100 hourly simple moving average. It traded as low as $6,761 and it is currently consolidating losses. There was a break above the 23.6% Fib retracement level of the downward move from the $7,295 high to $6,761 low. An initial resistance on the upside is seen near the $6,955 level (the recent breakdown zone). 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. Bitcoin Price The trend line coincides with the 100 hourly simple moving average at $7,035. Besides, the 50% Fib retracement level of the downward move from the $7,295 high to $6,761 low is near the $7,028 level. If there is an upside correction, bitcoin bulls are likely to struggle near the $7,000 and $7,030 levels. A successful close above the trend line, the 100 hourly SMA and $7,050 could open the doors for a fresh increase. The next key hurdle above $7,050 is near the $7,200 level. Main Uptrend Support If bitcoin fails to continue higher, it remains at a risk of more downsides below $6,800 and the $6,761 low. The next major support is near the $6,555 level, where the bulls are likely to take a stand. If the bulls struggle to keep the price above the main $6,555, there is a risk of a larger decline towards the $6,200 and $6,000 support levels in the near term. Technical indicators: Hourly MACD – The MACD is currently losing momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level. Major Support Levels – $6,750 followed by $6,555. Major Resistance Levels – $6,960, $7,030 and $7,200. Image from unsplash.

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Aayush Jindal, Khareem Sudlow