Bitcoin Price Watch: BTC/USD Forming Bull Flag
Bitcoin price is trading in a bullish zone above $6,200 against the US Dollar. BTC/USD must break the $6,400 and $6,500 resistance levels to climb further higher.
Bitcoin Price AnalysisThere was a sharp upside move from the $5,800 swing low in bitcoin price against the US Dollar. The BTC/USD pair climbed above the $6,000 and $6,400 resistance levels. It traded as high as $6,527 and is currently correcting lower. The price started a downside correction and broke the 38.2% Fib retracement level of the last wave from the $5,794 low to $6,527 high.
However, the decline was protected by the $6,250 level, which was a resistance earlier. Moreover, the 38.2% Fib retracement level of the last wave from the $5,794 low to $6,527 high also acted as a support. At the moment, there is a bullish flag pattern forming with support at $6,260 on the hourly chart of the BTC/USD pair. The flag support is near the $6,250 level. Below this, the price could test the $6,200 support and the 100 hourly simple moving average. If the flag pattern plays well, the price might resume its upside move by clearing the $6,400 resistance. The next hurdles are at $6,500 and $6,600.
Looking at the chart, the price must stay above the $6,200 support for an upside move. If not, there is a risk of a downside move back towards $6,000. The overall price action is positive with chances of a bullish break above $6,400.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is just below the 50 level.
Major Support Level – $6,200
Major Resistance Level – $6,400