Key Points

Bitcoin price declined sharply and broke an important support near $6,830 against the US Dollar.

A crucial bearish trend line with current resistance at $7,000 acted as a hurdle on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair declined below the $6,500 level and recoveries are likely to face sellers near $6,770.

Bitcoin price turned bearish below $6,830 against the US Dollar. BTC/USD could correct higher, but it is likely to face heavy selling interest near $6,700 and $6,770.

Bitcoin Price Analysis

Yesterday, we discussed that there could be a recovery above $7,050 in bitcoin price against the US Dollar. The BTC/USD pair did move above $7,050, but as discussed upsides were capped. The price failed to break the $7,070 and $7,150 resistance levels. More importantly, there was a rejection pattern formed near the $7,150 level and the 100 hourly simple moving average.

Lastly, a crucial bearish trend line with current resistance at $7,000 acted as a hurdle on the hourly chart of the BTC/USD pair. As a result, there was a sharp downside move and the price broke the $6,880 and $6,830 support levels. It moved into a bearish zone and even broke the $6,600 and $6,500 support levels. A low was formed near $6,393 and the price is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the last drop from the $7,157 high to $6,393 low. However, the most important resistance is near $6,700 and $6,770. It represents the 50% Fib retracement level of the last drop from the $7,157 high to $6,393 low.

Looking at the chart, BTC price is clearly in a bearish zone below $6,830. Any recoveries from the current levels are likely to face sellers near $6,700 and $6,770.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slowly reducing its bearish slope.

Hourly RSI (Relative Strength Index) – The RSI is positioned in the oversold zone.

Major Support Level – $6,200

Major Resistance Level – $6,770