Bitcoin price is facing an increase in selling pressure below the $6,920 resistance. BTC/USD might correct higher, but the bears are likely to protect $6,880 and $6,920.
In the past two sessions, there was a sharp decline in the bitcoin price from the $7,194 high against the US Dollar. BTC to USD broke the key $7,095 and $6,920 support levels.
Looking at the 1-hour chart, the price even traded below the $6,760 support level and settled well below the 25 simple moving average (1-hour, orange). It traded as low as $6,569 and it is currently correcting higher.
The market data is provided by TradingView, Bitfinex.
The price is now testing the 23.6% Fib retracement level of the latest drop from the $7,194 high to $6,569 low. Besides, the bitcoin price is currently trading inside a short-term contracting triangle with support near $6,660 on the same chart.
The triangle resistance is near the $6,720-$6,740 area, above which the price might continue to recover in the near term. The next key resistance is near the $6,880 level.
It is close to the 50% Fib retracement level of the latest drop from the $7,194 high to $6,569 low. The main hurdle is now near the $6,920 level and the 25 simple moving average (1-hour, orange).
If the bulls manage to gain strength above $6,880 and $6,920, the price might start a strong upward move in the coming sessions.
Conversely, Bitcoin might fail to recover above $6,880 and $6,920. In the mentioned case, there are high chances of more losses below the $6,600 and $6,560 levels. The next key support is near the $6,440 level, below which the bears are likely to aim a test of the $6,180 level.