Key Points

Bitcoin price is consolidating above the $6,590 and $6,550 support levels against the US Dollar.

There is a short-term declining channel in place with resistance at $6,720 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair has to surpass the $6,720 and $6,750 levels to move towards $6,850 and $6,900.

Bitcoin price settled above the $6,550 level against the US Dollar. BTC/USD must break the $6,720 resistance for an upward move toward $6,900 in the near term.

Bitcoin Price Analysis

After trading above the $6,800 level, bitcoin price started a downside correction against the US Dollar. The BTC/USD pair traded as high as $6,833 and corrected below the $6,750 level. During the decline, there was a break below the 23.6% Fib retracement level of the last wave from the $6,347 low to $6,833 high. However, there is a decent support visible near the $6,600 and $6,590 zone.

At the moment, the price is testing the $6,620 level and the 100 hourly simple moving average. Below this, the price could test the $6,590 support. It represents the 50% Fib retracement level of the last wave from the $6,347 low to $6,833 high. More importantly, there is a short-term declining channel in place with resistance at $6,720 on the hourly chart of the BTC/USD pair. If there is a downside break below the $6,590 level, the price may test the $6,550 level in the near term. On the upside, the price has to clear the $6,720 and $6,750 resistances to gain momentum. The next hurdle for buyers could be $6,830 and $6,900.

Looking at the chart, bitcoin price is still placed nicely above the $6,550 support. Below this, the price may extend losses towards the $6,420 level in the near term.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI is currently well below the 50 level.

Major Support Level – $6,550

Major Resistance Level – $6,720