Key Points

Bitcoin price finally made the next move and broke the $6,350 support against the US Dollar. 

There was a break below a major contracting triangle with support at $6,405 on the hourly chart of the BTC/USD pair (data feed from Kraken). 

The price traded towards the $6,200 support area where buyers emerged. 

Bitcoin price moved into a bearish zone below $6,350 against the US Dollar.  BTC/USD remains at risk of more losses below the $6,240 and $6,200 support levels. 

Bitcoin Price Analysis

After consolidating for a few days above the $6,350 support, bitcoin price finally made the next move against the US Dollar.  The BTC/USD pair was rejected near the $6,435 level, which sparked a downside move.  The price declined sharply and broke the $6,400 and $6,350 support levels.  The decline was such that the price even settled below the $6,300 level and the 100 hourly simple moving average. 

During the decline, there was a break below a major contracting triangle with support at $6,405 on the hourly chart of the BTC/USD pair.  The pair traded close to the $6,200 support and formed a low at $6,201.  Later, there was an upside correction above the $6,240 level.  The price also moved above the 23.6% Fib retracement level of the last decline from the $6,434 high to $6,201 low.  However, there are many hurdles for buyers near the $6,280 and $6,300 levels.  More importantly, the 50% Fib retracement level of the last decline from the $6,434 high to $6,201 low is at $6,318. 

Looking at the chart, bitcoin price is clearly trading in a bearish zone below the $6,350 support.  On the downside, once sellers push the price below $6,240 and $6,200, there could be more declines. 

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is about to move back in the bearish zone. 

Hourly RSI (Relative Strength Index) – The RSI is well below the 40 level. 

Major Support Level – $6,240

Major Resistance Level – $6,318