Yesterday, BTC managed to close above the $6,000 area successfully and formed a support base against the USD. This led to a steady increase above the $6,200 resistance and the 100 hourly simple moving average (SMA).

The price gained momentum and traded above the $6,400 support area. BTC went up by over 8% and even climbed above the $6,500 resistance level. A new high was formed near the $6,641 level but the price is still struggling to gain momentum above $6,600.

Bitcoin is currently making a downward correction and is trading below the $6,500 level. The 23.6% Fib retracement level of the recent upward move from the $5,846 low to $6,641 high has also been broken.

On the downside, an initial support is close to the $6,400 level. There is also a connecting bullish trend line forming, with support around $6,420, on the BTC/USD hourly chart. Below the trend line support, BTC could test the $6,300 support area and the 100 hourly SMA. The major support seems to be forming around the $6,240 level. It is near the 50% Fib retracement level of the recent uptrend from the $5,846 low to $6,641 high.

A successful break below the $6,300 and $6,240 levels, could lead the price to another bearish wave. In the mentioned bearish scenario, the price could decline towards the $6,000 level.

On the upside, if bitcoin remains stable above $6,400 or $6,300, it could further gain momentum above the $6,600 resistance area. A successful daily close above the $6,600 level and a follow through above $6,640 may perhaps trigger a decent rally towards the $6,800 and $7,000 resistance levels.

Technical Indicators:

The hourly MACD for BTC/USD is currently losing momentum in the bullish zone. The hourly RSI (Relative Strength Index) for the pair is currently making a downward correction towards the 50 level. Major support levels are at $6,400 and $6,300, whereas major resistance levels are also at $6,600, $6,640 and $6,800.