Bitcoin price is facing a major barrier near the $6,880 and $6,960 resistance levels. BTC/USD could start a major decline if it breaks the key $6,420 support area.
Recently, the bitcoin price gained pace above the $6,700 resistance area. However, BTC/USD struggled to gain momentum above the $6,800 and $6,880 resistance levels.
Looking at the 1-hour chart, the price formed a new swing high near $6,968 and there was a sharp downside correction. There was a break below the $6,600 level and the 25 simple moving average (1-hour, orange).
The market data is provided by TradingView, Bitfinex.
The price dived towards $6,400 and traded as low as $6,421. It is currently rising and trading above the $6,600 level. There was a break above the 50% Fib retracement level of the recent decline from the $6,968 high to $6,421 low.
However, the bitcoin price is facing strong resistance near the $6,800 level. Besides, it is struggling to gain pace above $6,800 and a connecting bearish trend line on the same chart.
The 61.8% Fib retracement level of the recent decline from the $6,968 high to the $6,421 low is also acting as a key resistance. Therefore, a clear break above the trend line and the $6,800 resistance is needed for upside continuation.
The main resistance is near $6,880 and $6,960, above which the bulls are likely to aim for a test of the $7,000 barrier in the near-term.
On the other hand, if Bitcoin fails to continue above $6,800, there could be a nasty downward move. Initial support is near $6,552, below which it could dive towards the $6,400 breakdown support area.