Key Points

Bitcoin price is forming a support base above the $6,350 and is currently moving higher against the US Dollar.

There is a short-term contracting triangle forming with resistance near $6,610 level on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair must stay above the $6,420 and $6,350 support levels to move higher.

Bitcoin price is gaining pace above the $6,400 level against the US Dollar. BTC/USD is likely to rise in the near term above the $6,620 level.

Bitcoin Price Analysis

Yesterday, we discussed a decent support formation near the $6,220 level in bitcoin price against the US Dollar. There was a double bottom pattern formed near the $6,220 level from where the BTC/USD pair climbed higher. The price moved above the $6,550 level and the 100 hourly simple moving average. Moreover, there was a close above the 38.2% Fib retracement level of the last drop from the $6,925 swing high to $6,210 swing low.

There was a slow and steady rise above the $6,350 and $6,420 level. However, the recent rise faced sellers near the $6,570 level. Furthermore, the 50% Fib retracement level of the last drop from the $6,925 swing high to $6,210 swing low. Additionally, there is a short-term contracting triangle forming with resistance near $6,610 level on the hourly chart of the BTC/USD pair. A break above the triangle resistance near $6,610 level is needed for more gains in the near term. Above this, the price may perhaps rise above the $6,700 level.

Looking at the chart, if bitcoin corrects lower, the $6,420 level is a decent support. Below this, the next major support is near the $6,350 level. Only a close below the $6,220 level is likely to increase more bearish pressures in the near term.

Looking at the technical indicators:

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

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

Major Support Level – $6,350

Major Resistance Level – $6,610