Bitcoin is struggling to gain momentum above $ 5,500 resistance against the US Dollar. If BTC price breaks the $ 5,000 support, it could start a major decline in the near term.
- Bitcoin is currently trading in a range between $ 5,000 and $ 5,500 against the US Dollar.
- A break below the $ 5,000 support could set the stage for a fresh decline.
- There is a key ascending channel forming with support near $ 5,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum if there is a clear break above $ 5,500 and $ 5,600.
Bitcoin Stuck In a Range
After a close above the $ 5,000 pivot level, bitcoin extended its rise against the US Dollar. BTC price traded above the $ 5,400 resistance and the 100 hourly simple moving average.
However, the price faced a strong selling interest above the $ 5,500 level. The bulls made a couple of attempts to gain pace above $ 5,500 and $ 5,600, but they failed. The last high was near $ 5,568 and the price is currently correcting lower.
It traded below the 23.6% Fib retracement level of the upward move from the $ 4,326 low to $ 5,568 high. The price even spiked below the $ 5,100 level and the 100 hourly simple moving average.
On the downside, the $ 5,000 area is acting as a strong support. The 50% Fib retracement level of the upward move from the $ 4,326 low to $ 5,568 high is also near the $ 4,947 level to provide support.
There is also a key ascending channel forming with support near $ 5,100 on the hourly chart of the BTC/USD pair. Therefore, a downside break below the channel support and the $ 5,000 support area could start a strong decrease.
The next support is near the $ 4,800 level, below which the price may perhaps continue to move down towards the $ 4,600 and $ 4,500 levels.
If bitcoin climbs higher above the $ 5,500 resistance and the channel upper trend line, the bulls could gain control. The next resistance is near the $ 5,600 level, above which the bulls are likely to aim a test of the $ 6,000 resistance in the near term.
The overall structure is slightly negative, but a break below the $ 5,000 support could put a lot of pressure on the bulls.
Hourly MACD – The MACD is about to move into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.
Major Support Levels – $ 5,100 followed by $ 5,000.
Major Resistance Levels – $ 5,500, $ 5,600 and $ 6,000.