BTC Recovering After Declining Sharply to Sub-$6,000 Levels
Bitcoin recently saw a steady decline from the $6,500 support levels. Moreover, the price broke the key $6,200 support area and the 100 hourly simple moving average (SMA).
The bears managed to push the price below the $6,000 support area. BTC traded as low as $5,846 and the price is currently correcting higher. The price was able to make a strong recovery above the $5,950 and $6,000 levels.
BTC surpassed the 23.6% Fib retracement level of the recent decline from the $6,875 high to $5,846 low. Moreover, there was a break above a key declining channel, with resistance near $6,080, on the BTC/USD hourly chart. BTC is now trading near the $6,200 resistance area, which happens to be the previous support.
On the upside, a couple of resistances are forming, starting with $6,300. The major resistance is near the $6,350 level and the 100 hourly SMA. The 50% Fib retracement level of the recent decline from the $6,875 high to $5,846 low is also near the $6,360 level to act as a major resistance.
A successful break above the $6,300 and $6,350 resistance levels, could lead the price to a steady rise in the coming sessions. The next major resistance is seen around the $6,500 and $6,650 levels.
On the downside, if BTC fails to continue above the $6,200 and $6,300 resistance levels, it could begin a fresh decline. An initial support on the downside is seen at the $6,000 and $5,950 levels. The major support is now close to the $5,850 level, below which there is a risk of a massive decline in the coming sessions.
The hourly MACD for BTC/USD is currently gaining momentum in the bullish zone. Hourly RSI (Relative Strength Index) for the pair is rising and it is back above the 50 level. Major support levels are at $6,000 and $5,950, whereas major resistance levels are also at $6,200, $6,300 and $6,350.
Featured image courtesy of Shutterstock. Souce: Cryptopress.