Bitcoin price rallied sharply above the $6,400 resistance before it faced sellers near $7,000. BTC/USD is currently correcting gains and trading near the $6,100 level.
Yesterday, there was a sharp increase in the bitcoin price above the $6,000 and $6,400 resistance levels. BTC/USD even broke the $6,600 resistance level and traded to a new weekly high.
Looking at the 1-hour chart, the price traded as high as $6,934 before it started a downside correction. There was a break below the $6,500 support level and the 25 simple moving average (1-hour, orange).
The market data is provided by TradingView, Bitfinex.
The price even broke support at $6,000 and spiked below the $5,800 level. A swing low formed near the $5,663 level before the price started an upside correction.
It traded above the $6,000 level, plus the 23.6% Fib retracement level of the recent decline from the $6,934 high to the $5,663 low. However, the current upward move is facing strong seller interest near the $6,300 level and the 25 simple moving average (1-hour, orange).
Besides, the bitcoin price is currently trading inside a contracting triangle with resistance near $6,220 on the 1-hour chart. To start a strong upward move, the bulls need to gain pace above the $6,220 resistance level and the $6,300 pivot area.
The next key resistance is near the $6,410 level, above which the price may perhaps continue to rise towards the $6,600 and $6,700 levels.
Conversely, there could be a fresh decline below the $6,000 support. It seems like Bitcoin might retest the $5,800 or $5,750 support levels before it starts a fresh increase. Any further losses may perhaps start another decline towards the $5,200 level.