Yesterday, after bitcoin had successful broken the $6,500 resistance, it extended its rise above $6,700. Moreover, the $6,800 resistance was also broken and the price settled above the 100 hourly simple moving average (SMA).

A daily high was formed near $6,880 and the price is currently making a downward correction. It tested the 23.6% Fib retracement level of the recent rally from the $5,752 low to $6,880 high.

On the downside, there are many supports for bitcoin, beginning with the $6,500 area. The next major support is close to the $6,520 level. The 50% Fib retracement level of the recent rally from the $5,752 low to $6,880 high is near $6,520, also serving as a support.

Notably, there is a major bullish trend line forming, with support near $6,120, on the BTC/USD hourly chart. The $6,320 and $6,120 levels are also likely to act as strong supports for BTC in the near term. A successful break by the bears below $6,120 may perhaps put a lot of pressure on the bulls. The next major support is seen near the $5,800 and $5,780 levels.

On the upside, an initial resistance is seen close to the $6,800 area. A successful break above the $6,800 and $6,820 resistance levels could lead to a sustained upward move. The next key resistance is close to the $7,000 level, above which the price is likely to rally towards the $7,200. A successful break above $7,200 may perhaps lead the price towards the $7,500 and $7,550 resistance levels in the near term.

Technical Indicators:

The hourly MACD for the BTC/USD pair is slowly gaining momentum in the bullish zone. The hourly RSI (Relative Strength Index) for the pair is currently rising and it is approaching the 60 level. Major support levels are at $6,500 and $6,320, whereas major resistance levels are also seen at $6,800, $7,000 and $7,200.