Bitcoin price declined sharply below the $6,720 support area and traded to a new weekly low. BTC/USD is recovering, but it is likely to fail near $6,780 or $6,800.
Yesterday, the bitcoin price made another attempt to surpass the $6,940 and $6,980 resistance levels. However, BTC/USD struggled to continue above $6,980 and started a sharp decline.
Looking at the 1-hour chart, the price broke the $6,840 support level and the 25 simple moving average (1-hour, orange) to move into a bearish zone. Besides, there was a break below yesterday’s ascending channel with support near $6,835.
The market data is provided by TradingView, Bitfinex.
It opened the door for an extended decline and the price declined below the $6,571 swing low. The Bitcoin price traded to a new weekly low at $6,498 and it is currently correcting higher.
There was a break above the $6,600 level, plus the 23.6% Fib retracement level of the latest dive from the $6,940 high to $6,498 low. BTC is currently testing a connecting bearish trend line with resistance near $6,700 on the same chart.
It seems like there is major resistance forming near $6,720, $6,780, and the 25 simple moving average (1-hour, orange). The 50% Fib retracement level of the latest dive from the $6,940 high to the $6,498 low is also near the $6,720 level.
Therefore, a successful close above the $6,740 and $6,780 resistance levels is needed for a strong recovery wave. Conversely, Bitcoin might start a fresh decline from the $6,780 resistance.
Initial support is near the $6,570 level. A proper close below $6,570 could set the stage for a move towards $6,400 or even $6,320.