Key Points

Bitcoin price recovered nicely after forming a support base near $6,200 against the US Dollar.

There was a break above a key contracting triangle with resistance at $6,375 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair may perhaps continue to move higher towards the $6,570 and $6,750 resistance levels.

Bitcoin price is signaling more gains above $6,550 against the US Dollar. BTC/USD could accelerate once buyers gain momentum above $6,550-6,600.

Bitcoin Price Analysis

Yesterday, we saw a downside correction below the $6,300 level in bitcoin price against the US Dollar. The BTC/USD pair tested the $6,200 support where buyers emerged. The price formed a base near $6,200 and the 100 hourly simple moving average. Later, there was a fresh upward move and the price traded above $6,300 and $6,400. Moreover, there was a break above the 50% Fib retracement level of the last slide from the $6,650 high to $6,213 low.

More importantly, there was a break above a key contracting triangle with resistance at $6,375 on the hourly chart of the BTC/USD pair. The pair is currently trading near the 61.8% Fib retracement level of the last slide from the $6,650 high to $6,213 low. Once it clears the $6,547 and $6,550 resistance levels, it could accelerate further higher. The next resistance could be around the last high at $6,650. Above this, the price will most likely test the 1.236 Fib extension level of the last slide from the $6,650 high to $6,213 low at $6,753.

Looking at the chart, bitcoin is placed nicely above the $6,300 level. It seems like buyers are likely to take control above $6,500 in the near term. The important supports on the downside are $6,375, $6,300 and $6,200.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is placed in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is moving higher and is currently above the 55 level.

Major Support Level – $6,300

Major Resistance Level – $6,550