Bitcoin Struggles to Break Resistance Levels
Bitcoin seems unable to break past its current resistance of $6,600, with the present bullish attitude towards the currency maintaining itself as a further drop in price proves possible.
1. Bitcoin and the US dollar have both declined, with the former failing to climb past its $6600 resistance level.
2. The trending bullish line was intercepted by Bitcoin with a low valuing of around $6,580 as of Thursday.
3. Bitcoin and the United States dollar are both on the path to a new low area of around $6,420.
As both currencies continuously fail to break past their current resistance levels, both may see an even bigger drop.
Bitcoin tested both levels of resistance, priced at $6,600 and $6,550, against the United States dollar, and both currencies failed to breach the $6,600 high, resulting in a declining attitude. A new support level was achieved at $6,500 as a result of the drop in price.
On Thursday, the climbing bullish trend saw a support level of $6,560, breaching the positive trend line between Bitcoin and the USD. Both currencies dropped to the $6,450 support level, testing against the achieved low. A Fibonacci retracement has seen a primary resistance level of around 23 percent of the decline from Bitcoins high of $6,791 to its low of $6,447.
Should Bitcoin break past the current bearish trend with a resistance of $6,560, the currency will climb to the $6620 mark. The resistance level is vital and as the current price struggles to climb past the $6550 and $6600 resistance, the current support level of $6,400 must be maintained to avoid a bearish breakthrough.