• Bitcoin price traded to a new 2019 high above $5,950 and recently corrected lower against the US Dollar.
• The price declined below the $5,900 and $5,840 support levels, but it remained well bid.
• There was a break below a connecting bullish trend line with support near $5,840 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to climb higher once towards the $5,880 and $5,900 levels in the near term.

Bitcoin price started a downside correction after testing $5,950-6,000 against the US Dollar. BTC remains well supported in the short term near the $5,740 and $5,560 levels.

Bitcoin Price Analysis

Yesterday, there was a fresh rise in bitcoin price above the $5,850 resistance against the US Dollar. The BTC/USD pair climbed above the $5,900 level and traded close to the $6,000 resistance level. A new 2019 high was formed near $5,965 and the price recently corrected lower. There was a sharp dip below the $5,900 level, triggered by the report of 7,000 BTC hack news from the cryptocurrency exchange, Binance. The price declined below the $5,800 support and the 50% Fib retracement level of the last wave from the $5,563 low to $5,962 high.

During the decline, there was a break below a connecting bullish trend line with support near $5,840 on the hourly chart of the BTC/USD pair. The pair even spiked below the $5,700 level and the 100 hourly simple moving average. It tested the 76.4% Fib retracement level of the last wave from the $5,563 low to $5,962 high. After tagging the $5,670 level, the price bounced back. It is currently trading above the $5,750 level and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $5,840 level. If there is an upside break above the $5,840 level, the price may retest the $5,900 level. Any further gains could push the price towards the $5,950-5,960 resistance zone. On the downside, an initial support is at $5,760. The next key support is near the $5,740 level and the 100 hourly SMA.

Looking at the chart, bitcoin price clearly corrected lower sharply, but later bought back above $5,740. Therefore, there are high chances of a fresh rise towards the $5,900 and $5,950 level. Conversely, if the price breaks the 100 hourly SMA, it could revisit the main support near the $5,560 level in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is currently placed in the bearish zone, with a few positive signs.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving higher and it could break 50.

Major Support Levels – $5,740 followed by $5,560.

Major Resistance Levels – $5,840, $5,900 and $5,960.