Bitcoin (BTC) Price Rally Reaching Crucial Juncture: Can Bulls Break $6.2K?

  • Bitcoin price extended gains and traded to a new 2019 high above $6,080 against the US Dollar.
  • The price surged higher towards the $6,100 level and it is currently consolidating gains.
  • There was a break above a connecting trend line with resistance at $6,005 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains well supported on the downside, but there are many hurdles near $6,100 and $6,200.

Bitcoin price surging higher with a bullish bias above $6,000 against the US Dollar. BTC could surge towards the $6,200 level before a strong downside correction.

Bitcoin Price Analysis

Yesterday, there was a sharp decline in bitcoin price below $5,900 against the US Dollar due to the Binance exchange security breach. The BTC/USD pair declined below the $5,800 level and the 100 hourly simple moving average. However, the $5,660 level acted as a strong support, resulting in a fresh rise. The price started a strong rise and broke the $5,900 and $5,950 resistance levels. There was even a close above the $5,950 level and the 100 hourly SMA.

During the rise, there was a break above a connecting trend line with resistance at $6,005 on the hourly chart of the BTC/USD pair. The pair climbed above the $6,050 level and traded to a new 2019 high above $6,080. A swing high was formed at $6,096 and the price is currently consolidating gains. An initial support is near $6,020, the broken trend line, and the 23.6% Fib retracement level of the last wave from the $5,810 low to $6,096 high. If there is a break below $6,020 and $6,000, the price may test the $5,950 support zone. It represents a strong support and coincides with the 50% Fib retracement level of the last wave from the $5,810 low to $6,096 high.

If there is a downside extension, the next support is at $5,920. There is also a connecting bullish trend line on the same chart with support near $5,880. Therefore, the price remains well supported on the downside near $6,020, $6,000 and $5,950. On the upside, there are many hurdles for the bulls near $6,100 and $6,200.

Looking at the chart, bitcoin price is clearly placed in a strong uptrend above $5,950. Having said that, the price could start a crucial downside correction at any moment or from the $6,100 and $6,200 resistances.

Technical indicators:

Hourly MACD – The MACD is currently is gaining pace in the bullish zone, with positive signs.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently in the overbought zone above the 75 level.

Major Support Levels – $6,000 followed by $5,950.

Major Resistance Levels – $6,080, $6,100 and $6,200.

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