Yesterday, BTC broke the key $6,500 and $6,600 resistance levels against the USD. The price made more upsides and broke many important resistances, starting with $6,800. Moreover, BTC gained momentum and rallied above the $7,000 resistance. As discussed yesterday, the price tested the $7,200 target and traded well above the 100 hourly simple moving average (SMA).

A weekly high was formed close to $7,273 and the price is currently making a downward correction. The $7,000 resistance level, plus the 23.6% Fib retracement level of the recent rally from the $6,156 low to $7,273 high, were all broken. The price even traded below the $6,800 support level. However, the decline was protected by the $6,700 support region.

On the downside, it seems like there is a key bullish trend line forming, with support close to $6,715, on the BTC/USD hourly chart. The 50% Fib retracement level of the recent rally from the $6,156 low to $7,273 high is also acting as a strong support.

A successful break below the trend line support and $6,700 could extend its downside correction. The main support is now forming close to the $6,500 area, where the bulls could likely take a strong stand in the coming sessions.

On the upside, if bitcoin remains well bid above the $6,700 and $6,500 support levels, it could likely continue higher. An initial resistance is forming close to the $7,000 level. The next major resistance is near the $7,200 level, above which BTC is likely to surpass the recent high of $7,273. Any further gains could likely lead the bulls towards the $7,500 resistance.

Technical Indicators:

The hourly MACD for the BTC/USD pair is slowly gaining momentum in the bearish zone. The hourly RSI (Relative Strength Index) for the pair is still well above the 50 level. Major support levels are at $6,700 and $6,500, whereas major resistance levels are also at $6,900, $7,000 and $7,200.