This past week, bitcoin struggled to gain momentum above the $6,880 and even tried to break the $7,000 resistance level. A new weekly high was formed near the $6,982 level and the price started a fresh decline.

Moreover, the major $6,500 support level was broken and BTC started a substantial decline. There was also a break below a major bullish trend line, with support at $6,620, on the BTC/USD 4-hours chart. The price even dropped below the $6,200 support and traded near the $6,000 area.

A new weekly low was recently formed near the $6,048 level and the price is currently consolidating losses. On the upside, an initial resistance is seen near the $6,270 level. It is close to the 23.6% Fib retracement level of the recent drop from the $6,982 high to $6,048 low.

On the downside, there are a couple of key supports seen around $6,050 and $6,000. The main support is near the $5,950 level and the 100 simple moving average (4-hours).

Failure to stay above the 100 SMA could lead the BTC price to a massive decline below $5,800. An immediate support is seen near the $5,750 level. A successful break below this level could likely lead the price to decline towards the $5,500 level.

The major support for BTC is forming near the $6,000 level and the 100 SMA. If BTC manages to stay above the 100 SMA, there are chances of a strong recovery above the $6,300 level.

The next major resistance is also near the $6,500 region. The 50% Fib retracement level of the recent drop from the $6,982 high to $6,048 low is also near $6,515, serving as resistance. Therefore, a successful break above the $6,500 resistance level could begin a fresh rally towards the $6,800 and $7,000 resistance levels.

Technical Indicators

The 4 hours MACD for BTC/USD is about to move back into the bullish zone. The 4 hours RSI (Relative Strength Index) for the pair is currently flat near the 40 level. Major support level is at $6,000, whereas major resistance level is also at $6,500.