Bitcoin price declined heavily in the past 3-4 sessions and broke the $6,050 support. BTC/USD tested the $5,880 area and it is currently recovering higher towards a major barrier.
After forming a topping pattern near the $6,520 level, the bitcoin price started a major drop against the US Dollar. BTC to USD broke the key $6,050 support area to move into a bearish zone.
Looking at the 1-hour chart, the price even broke the $5,940 support area and the 25 simple moving average (1-hour, orange). It traded as low as $5,881 and recently started a decent recovery wave.
The market data is provided by TradingView, Bitfinex.
The price climbed back above the $6,000 pivot level and the $6,050 resistance level. Besides, there was a break above the 23.6% Fib retracement level of the recent slide from the $6,701 high to $5,881 low.
However, the bitcoin price is currently facing hurdles near $6,220 and a major bearish trend line on the same chart. The main resistance zone is near the $6,290 level. It coincides with the previous support zone and now represents the 50% Fib retracement level of the recent slide from the $6,701 high to $5,881 low.
If the bulls gain pace above the trend line resistance and the $6,290 area, there are chances of a strong rise in the coming sessions. The next major resistance is near the $6,500 zone.
If Bitcoin fails to correct above the trend line and the $6,290 barrier, it could resume its decline below the $6,150 level. A successful close below the $6,050 level may perhaps accelerate decline below $5,940. The next major support for the bulls is seen near the $5,880 and $5,820 levels.