Key Points

Bitcoin price remained well supported, but it struggled to break the $6,700-6,800 resistance against the US Dollar.

There is a major bullish trend line formed with support at $6,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair is currently trading in a range below the $6,700 resistance and is preparing for the next move.

Bitcoin price is placed nicely above $6,500 against the US Dollar. BTC/USD may slowly climb higher to a new monthly high as long as it is above $6,400.

Bitcoin Price Analysis

Yesterday, bitcoin price gained momentum and traded above the $6,700 resistance against the US Dollar. The BTC/USD pair traded towards the $6,800 resistance and formed a new monthly high at $6,793. Later, there was a downside correction and the price declined below the $6,700 level. There was also a break below the 50% Fib retracement level of the last leg from the $6,403 low to $6,793 high.

The downside move found support near the $6,500 level. Moreover, a major bullish trend line acted as a barrier with current support at $6,550 on the hourly chart of the BTC/USD pair. Moreover, the 61.8% Fib retracement level of the last leg from the $6,403 low to $6,793 high also provided support. On the downside, the 100 hourly simple moving average is positioned at $6,500 to prevent declines. Therefore, it seems like there are many supports on the downside between $6,550-6,400. On the upside, an initial resistance is at $6,700. Above this, there is a chance of a new monthly higher above $6,800.

Looking at the chart, the price is well supported above $6,400. It is currently consolidating below the $6,700 and it seems like buyers could gain momentum for more gains in the near term.

Looking at the technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI is now near the 50 level.

Major Support Level – $6,600

Major Resistance Level – $6,800