Bitcoin price started a downside correction from the $6,636 high. BTC/USD is now trading near the crucial $6,290 support, below which it could dive to $6,050.
In the past few hours, there was an increase in selling below $6,520. The bitcoin price broke the $6,460 support level to start a downside correction.
Looking at the 1-hour chart, the price even broke the $6,320 level and the 25 simple moving average (1-hour, orange). It is now trading near the key $6,290 support area (the last breakout zone).
The market data is provided by TradingView, Bitfinex.
It seems like the bulls are defending the $6,290 support area. On the upside, initial resistance is near the $6,365 level since it’s close to the 23.6% Fib retracement level of the recent decline from the $6,636 high to the $6,285 low.
Besides, the bitcoin price is likely to face strong resistance near $6,460 and a bearish trend line on the same chart. The 25 simple moving average (1-hour, orange) is waiting near the $6,450 level to act as a hurdle.
The 50% Fib retracement level of the recent decline from the $6,636 high to the $6,285 low is also near the $6,460 resistance. Therefore, the price must gain bullish momentum above the $6,460 and $6,520 resistance levels to continue higher.
On the downside, the main support is near the $6,290 level. If there is a successful break and close below the $6,290 support, the bears are likely to gain traction.
The next support is near the $6,160 level, below which Bitcoin is likely to test the $6,090 area. Any further losses could open the doors for a drop towards the $5,880 region.