Key Points

• Bitcoin price is slowly recovering and forming support around the $6,500 level against the US Dollar.

• There is a major bearish trend line forming with resistance at $7,500 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

• The pair has to move above the $7,400 and $7,500 resistance levels to gain upside momentum.

Bitcoin price is supported nicely above the $6,500 level against the US Dollar. BTC/USD must clear the $7,500 hurdle for more gains in the near term.

Bitcoin Price Resistance

After a major decline, bitcoin price formed a decent support above the $6,500 level against the US Dollar. The price started an upside move and traded above $7,000. However, the price struggled to gain momentum and declined once again back towards the $6,500 level. The mentioned support holds a lot of importance with multiple rejections around the $6,600 and $6,500 levels.

At the moment, the price is trading near the 23.6% Fib retracement level of the last drop from the $9,220 high to $6,448 low. However, there are many barriers on the upside near the $7,200 and $7,500 levels. An initial resistance is near the 38.2% Fib retracement level of the last drop from the $9,220 high to $6,448 low. The next one is around the $7,400 level and the 100 simple moving average (4-hours). There is also a major bearish trend line forming with resistance at $7,500 on the 4-hours chart of the BTC/USD pair.

The pair may start an upside move towards the $7,400 and $7,500 levels. However, a break above the $7,500 level would be very difficult. A break above $7,500 could open the doors for more gains. On the flip side, the $6,600 and $6,500 support levels hold a lot of significance.

Looking at the technical indicators:              

4-hours MACD – The MACD for BTC/USD is showing a few positive signs.

4-hours RSI (Relative Strength Index) – The RSI is currently just above the 50 level.

Major Support Level – $6,600

Major Resistance Level – $7,500