Bitcoin Faces Tough Times After Failure to Surpass the $6000 Mark
After an eye-raising decline spell over the week, Bitcoin price made a recovery above $5,000 and $5,500 against the USD. The price looks to be forming a decent support above the $5,000 mark. However, it is facing resistances near the 100 hourly simple moving average (SMA).
During the recent upward trend, there was a break above a connecting bearish trend line. At the time, the resistance stood at $5,325 on the BTC/USD pair hourly chart. Although bitcoin faces a struggle to climb above the $6,000 resistance, all the two attempts made were unsuccessful. The 50% Fib retracement level of the major spike from the $7,988 high to $3,935 low is also acting as a barrier.
It looks like there is a formation of a double top pattern nearing the $6,000 resistance level. If the price eventually breaks below the $5,100 and $5,000 support levels, the bears will be primed to take control. The next pivot is seen around the $4,800 level, below which the price is likely to make a decline towards the $4,400 level in the near term.
If bitcoin remains well traded above the $5,000 support area, it could make another attempt to surpass $6,000. There is also a formation of a key bearish trend line, with resistance around $5,650, on the same hourly chart of the pair. A successful break above the trend line, the 100 hourly SMA, and the $6,000 hurdle is important to begin any decent rally in the coming sessions.