Key Points

Bitcoin price formed a support base near $6,110 and recovered higher against the US Dollar.

There was a break above a connecting bearish trend line with resistance at $6,195 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair may perhaps correct higher towards $6,300-6,315, but upsides are likely to be capped.

Bitcoin price is slowly recovering above $6,200 against the US Dollar. However, BTC/USD is likely to face a strong resistance near the $6,315 and $6,365 levels.

Bitcoin Price Analysis

Yesterday, there was a sharp downside move below $6,400 in bitcoin price against the US Dollar. The BTC/USD pair even broke the $6,200 support level and settled below the 100 hourly simple moving average. It tested the next important support at $6,100-6,110 and later started consolidating losses. A support base was formed near $6,110 and the price started an upside correction.

It recently traded above the $6,200 resistance to move into a positive zone. There was a break above the 23.6% Fib retracement level of the last decline from the $6,538 high to $6,093 low. Moreover, there was a break above a connecting bearish trend line with resistance at $6,195 on the hourly chart of the BTC/USD pair. The pair is currently placed with a positive angle above the $6,200 level. There could be a minor downside, but it seems like the price may continue towards $6,300 in the short term. However, upsides are likely to be capped by the $6,315 level. It represents the 50% Fib retracement level of the last decline from the $6,538 high to $6,093 low.

Looking at the chart, bitcoin price is facing solid resistances near the $6,315 and $6,365 levels. On the downside, the $6,110 support holds the key, below which the price could decline towards $6,000.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI is currently just around the 50 level.

Major Support Level – $6,110

Major Resistance Level – $6,315