Yesterday, the BTC price traded well above the $6,400 support area. Moreover, the price broke above the $6,800 resistance and settled above the 100 hourly simple moving average (SMA). However, it seems the bulls are struggling near the $7,000 resistance area to push the price higher.
A double top pattern, with resistance near $7,000, is likely forming on the BTC price chart. A daily high was formed near $6,989 and the price is currently correcting lower. There was a break below the 23.6% Fib retracement level of the recent rally from the $5,750 low to $6,989 high.
On the downside, a strong support is seen at the $6,500 area. The next major support is seen near the $6,400 level and the 100 hourly SMA. The 50% Fib retracement level of the recent rally from the $5,750 low to $6,989 high is near the $6,400, also serving as a support. A successful break below the $6,400 support and the 100 hourly SMA, could start a major decline. The next support is seen close to the $6,200 level.
Additionally, there is a crucial bullish trend line forming, with support near $6,240, on the BTC/USD hourly chart. A successful break below this trend line support will most likely confirm the highlighted double top pattern. In the above scenario, the price is likely to decline towards the $6,000 and $5,800 support levels.
On the upside, if bitcoin remains well supported above the $6,500 and $6,400 levels, it could rise above the $7,000 resistance area in the near term. A clear break above $7,000 may perhaps negate the double top pattern and the price could rally towards the $7,500 level.
The hourly MACD for BTC/USD is slowly losing momentum in the bullish zone. Hourly RSI (Relative Strength Index) for the pair is currently above the 50 level, with a bearish angle. Major support levels are at $6,500 and $6,400, whereas major resistance levels are also seen at $6,900, $7,000 and $7,200.