Bitcoin price started a downside correction from the $7,283 high. BTC/USD is currently consolidating above $6,620 and seems to be preparing for the next move.
After a strong move, the bitcoin price started a downward correction from the $7,283 high. BTC/USD corrected below $7,000 and tested the $6,620 support area.
Looking at the 1-hour chart, the price recovered a few points from $6,620 and climbed above $6,800. However, it failed to continue above $7,000 and declined once again. It broke the $6,800 support and the 25 simple moving average (1-hour, orange).
The market data is provided by TradingView, Bitfinex.
The price traded as low as $6,628 and is currently consolidating losses. It is also trading near the 23.6% Fib retracement level of the recent decline from the $7,053 high to the $6,628 low.
On the upside, the bitcoin price is facing hurdles near $6,800 and a connecting bearish trend line on the same chart. Above the trend line, the next hurdle is near the $6,840 level.
The 50% Fib retracement level of the recent decline from the $7,053 high to the $6,628 low is also near the $6,840 level which would act as major resistance. A clear break above $6,840 could open the doors for a decent upward move towards $7,000 and $7,060.
Conversely, the price may perhaps struggle to continue higher above resistance at $6,800 and $6,840. In that case, the price is likely to start a downward extension below support at $6,620.
The next key support is near the $6,520 level (the previous major hurdle), where bitcoin buyers are likely to take a strong stand in the coming sessions.