Bitcoin Price Watch: BTC/USD Near Crucial Juncture

Key Points
Bitcoin price declined further and broke the $6,680 and $6,600 support levels against the US Dollar.
Yesterday’s highlighted connecting bearish trend line is intact with resistance at $6,680 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must stay above the $6,550 support zone to avoid more declines in the near term.
Bitcoin price extended losses below the $6,680 support against the US Dollar. BTC/USD is now at a risk of further slides if there is a break below $6,550.

Bitcoin Price Analysis
Bitcoin price started a downside move from the $6,840 swing high against the US Dollar. The BTC/USD pair declined and broke the $6,700 support level. The decline was such that the price failed to hold the $6,680 support area. More importantly, there was a break below the 50% Fib retracement level of the last leg from the $6,445 low to $6,840 swing high.

There was a spike below the $6,580 support and the price settled below the 100 hourly simple moving average. On the downside, there is a bullish trend line with support at $6,560 on the hourly chart of the BTC/USD pair. If the pair breaks the trend line and $6,550, there is a risk of more slides. An initial support is around the 76.4% Fib retracement level of the last leg from the $6,445 low to $6,840 swing high at $6,540. Below this, the price may perhaps accelerate declines towards $6,500 and $6,450. On the upside, the $6,650 and the 100 hourly SMA are initial barriers.

Looking at the chart, yesterday’s highlighted connecting bearish trend line is intact with resistance at $6,680. A break above this trend line and $6,700 is needed for a recovery. The next resistances are seen near $6,750 and $6,800.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is placed heavily in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is moving towards the 20 level.

Major Support Level – $6,550

Major Resistance Level – $6,680