Bitcoin Price Forecast: BTC/USD Correction Over, Buy above $6500?

Bitcoin price recently declined from $7800 against the US Dollar. It seems like a correction as BTC/USD is reaching a major buy zone.

Key Points

• Bitcoin price recently traded to a new all-time high at $7804 (Data feed via Kraken) against the US Dollar, and started correcting lower.
• The BTC/USD pair is currently trading near a monster support trend line at $6500 on the daily chart.
• As long as the pair is above the trend line support and $6500, it might bounce back.

Bitcoin Price Remains Buy?

There was a nasty bull run in bitcoin price lately as it traded to a new all-time high at $7804 against the US Dollar. As mentioned in the previous analysis, there was a break above the $6000 level to initiate a major uptrend. Later, the BTC/USD pair found sellers and started a downside move below $7500.

Initially, there was a break below the 23.6% Fibonacci retracement level of the last wave from the $5180 low to $7804 high. Then, sellers gained control and were able to break the $7000 support level.

It ignited further declines and the price traded toward the 50% Fibonacci retracement level of the last wave from the $5180 low to $7804 high near $6480. Buyers appeared around the $6480-6450 levels and topped sellers from breaking the $6400 level.

Moreover, there is a monster bullish trend line forming with current support at $6500 on the daily chart of BTC/USD. The highlighted trend line support holds a lot of importance around $6500-6450 in the near term.

Can BTC/USD Recover?

As long as the pair is above the $6450 level, there is a chance of it recovering. On the upside, the broken support at $7000-6950 may now act as a super resistance for buyers. Sellers will most likely defend gains near $7000 in the current wave.

The recent happenings about the bitcoin hard fork, cancellation and resumption forced made many investors to take profits.

It won’t be easy for bitcoin price to stay above $6450, but if it does, it could bounce back during the coming days. Other cryptocurrencies are also likely to follow BTC in the near term.

Trade safe traders and enjoy the ride!!!