Key Points

Bitcoin price declined towards the $6,350 support and later recovered sharply against the US Dollar.

There was a break above two bearish trend lines formed with resistance at $6,410 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price tagged the $6,450-60 resistance and it is currently correcting lower.

Bitcoin price recovered higher towards the range high at $6,460 against the US Dollar. BTC/USD remains supported on dips near the $6,410 and $6,400 supports.

Bitcoin Price Analysis

There was a downside extension below the $6,400 and $6,390 levels in bitcoin price against the US Dollar. The BTC/USD pair declined towards the $6,350 support area and formed a low at $6,357. Later, the price bounced back sharply and broke the $6,400 resistance area. There was even a close above the $6,400 resistance and the 100 hourly simple moving average.

The upside move was strong as the price surpassed the $6,420 swing high as well. More importantly, there was a break above two bearish trend lines formed with resistance at $6,410 on the hourly chart of the BTC/USD pair. The pair traded towards the $6,450-60 zone, which is the range resistance. A high was formed at $6,466 and later the price corrected lower. It moved below the 23.6% Fib retracement level of the last wave from the $6,357 low to $6,466 high. However, there is a decent support formed near $6,400 and the 100 hourly. Moreover, the 50% Fib retracement level of the last wave from the $6,357 low to $6,466 high is also near $6,410.

Looking at the chart, bitcoin price could dip a few points, but the $6,400-10 support area could protect losses. On the upside, the price has to move above the $6,450-60 range resistance to climb further higher.

Looking at the technical indicators:

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

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

Major Support Level – $6,400

Major Resistance Level – $6,460