Bitcoin price traded above the $6,550 level recently against the US Dollar. BTC/USD traded as high as $6,585 before correcting back to the $6,380 support.
- Bitcoin is currently correcting lower after hitting the weekly high at $6,585.
- BTC/USD broke a short-term ascending channel with support at $6,510 on the 2-hours chart.
- BTC price must stay above the $6,380 support to bounce back towards $6,600 and $6,650.
Bitcoin price analysis
Bitcoin price climbed higher recently and moved above the $6,380 and $6,400 resistance levels against the US Dollar. BTC/USD traded to a new weekly high at $6,585 before starting a downside correction.
The 2-hours chart of BTC price indicates that there was a sharp downside correction below the $6,500 level. The price declined below the 23.6% Fib retracement level of the last wave from the $6,187 low to $6,585 high.
More importantly, there was a break below a short-term ascending channel with support at $6,510 on the same chart. The price declined further and tested the previous resistance at $6,380, which acted as a support.
Additionally, the 50% Fib retracement level of the last wave from the $6,187 low to $6,585 high also acted as a support. The price is currently holding the $6,380-6,400 support area with a few positive signs.
If buyers fail to keep the price above the $6,380 support and the 100 simple moving average (2-hours), there could be more losses towards the $6.210 support. Below this, the next major support is near the $6,090 level.
On the other hand, if the price recovers back above the $6,500 and $6,550 resistances, it may well break the $6,585 high. The next major resistance for buyers is close to $6,620, followed by the $6,680 level. Finally, a push above the $6,700 barrier could open the doors for a test of $6,800.
Overall, the bitcoin price is trading near a major inflection point and it must stay above the $6,380 support and the 100 SMA. If not, BTC/USD will most likely trim most of its gains and decline back towards $6,210 or $6,090 in the near term.