Bitcoin price is rising and correcting losses from the $6,570 swing low. BTC/USD is now facing major resistance near the $6,920 and $6,940 levels.
After trading to a new multi-week low at $6,571, the bitcoin price started a short-term upside correction. BTC/USD recovered above the $6,600 and $6,700 levels.
Looking at the 1-hour chart, the price even traded above the $6,800 resistance level and the 25 simple moving average (1-hour, orange). However, the bulls are now facing major resistance near the $6,920 and $6,940 levels.
The market data is provided by TradingView, Bitfinex.
The previous support area near the $6,920 and $6,940 levels is now acting as a hurdle. A high is formed near $6,928 and the price is currently showing a few bearish signs.
Initial support is near the $6,855 level or the 23.6% Fib retracement level of the recent recovery from the $6,626 swing low to the $6,928 high. The main support on the downside is near the $6,775 level and the 25 simple moving average (1-hour, orange).
The 50% Fib retracement level of the recent recovery from the $6,626 swing low to the $6,928 high is also near the $6,777 level to provide support. Furthermore, the bitcoin price is currently trading inside a major ascending channel with support near $6,740 on the same chart.
Therefore, if the bulls fail to surpass the $6,920 and $6,940 resistance levels, there is risk of a push towards the channel support. Any further losses below $6,740 might restart the decline and Bitcoin could drop to $6,570.
On the other hand, a clear break above the $6,920 and $6,940 resistance levels is likely to open the doors for a decent rise towards the $7,150 level.