Bitcoin is currently trading in a broad range above the $6,500 support against the US Dollar. BTC is facing a major resistance near $7,500 and the 100-day simple moving average.
- Bitcoin is still in a larger downtrend below the $7,500 resistance against the US Dollar.
- The price is currently consolidating above the $6,500 support area.
- There is a major bearish trend line forming with resistance near $7,580 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The bulls are likely to face a strong resistance near $7,500 and the 100-day simple moving average.
Bitcoin Price is Approaching Major Hurdle
In the past few days, bitcoin mostly traded in a broad range above the $6,400 and $6,500 support levels against the US Dollar. BTC price seems to be well bid above the $6,500 level, but it is facing a lot of hurdles on the upside.The first key resistance is near the $7,240 level. It represents the 50% Fib retracement level of the crucial drop from the $10,561 high to $3,920 swing low. The bulls already made an attempt to clear the $7,240 resistance, but they failed.
Fresh Decline?
If bitcoin price fails to continue above the $7,500 resistance or the $8,000 barrier, it could start a fresh decline. An initial support on the downside is near the $6,400 level.
If the price fails to stay above the $6,400 support, it may perhaps retest the $6,000 support. Any further losses could start another significant decline towards the $5,000 support area in the near term. Technical indicators:Image from unsplash.