Key Points

Bitcoin price declined and retested the $6,200 support before recovering sharply against the US Dollar.

There was a break above a major bearish trend line with resistance at $6,275 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price may correct a few points, but it could find support near the $6,290 or $6,245 level.

Bitcoin price is holding gains above $6,290 against the US Dollar. BTC/USD could climb further higher towards the $6,355 and $6,385 resistance levels.

Bitcoin Price Analysis

Yesterday, we discussed chances of more losses below the $6,250 support in bitcoin price against the US Dollar. The BTC/USD pair did move down below the $6,250 and retested the $6,200 support. However, there was a strong buying interest near the $6,200 zone, resulting in a sharp recovery. The price traded as low as $6,205 and later jumped above the $6,290 and $6,300 resistance levels.

The upside move was strong as the price spiked above the $6,355 resistance and the 100 hourly simple moving average. However, buyers failed to hold gains above the $6,355 level, which resulted in a push below $6,320 and the 100 hourly SMA. The price tested the 50% Fib retracement level of the recent wave from the $6,205 low to $6,377 high. The current price action is positive and it seems like the price may climb back towards $6,355 or $6,385 in the near term. An initial support awaits near $6,290 followed by the 61.8% Fib retracement level of the recent wave from the $6,205 low to $6,377 high. The main support on the downside below $6,271 is near the $6,245 level.

Looking at the chart, bitcoin price is nicely supported near $6,290 and $6,245. As long as there is no break below the recent low, the price could recover above $6,355.

Looking at the technical indicators:

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

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

Major Support Level – $6,245

Major Resistance Level – $6,355