Key Points
- Bitcoin price is slowly recovering and forming support around the $6,500 level against the US Dollar.
- There is a major bearish trend line forming with resistance at $7,500 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair has to move above the $7,400 and $7,500 resistance levels to gain upside momentum.
Bitcoin price is supported nicely above the $6,500 level against the US Dollar. BTC/USD must clear the $7,500 hurdle for more gains in the near term.
Bitcoin Price Resistance
After a major decline, bitcoin price formed a decent support above the $6,500 level against the US Dollar. The price started an upside move and traded above $7,000. However, the price struggled to gain momentum and declined once again back towards the $6,500 level. The mentioned support holds a lot of importance with multiple rejections around the $6,600 and $6,500 levels.
At the moment, the price is trading near the 23.6% Fib retracement level of the last drop from the $9,220 high to $6,448 low. However, there are many barriers on the upside near the $7,200 and $7,500 levels. An initial resistance is near the 38.2% Fib retracement level of the last drop from the $9,220 high to $6,448 low. The next one is around the $7,400 level and the 100 simple moving average (4-hours). There is also a major bearish trend line forming with resistance at $7,500 on the 4-hours chart of the BTC/USD pair.
The pair may start an upside move towards the $7,400 and $7,500 levels. However, a break above the $7,500 level would be very difficult. A break above $7,500 could open the doors for more gains. On the flip side, the $6,600 and $6,500 support levels hold a lot of significance.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is showing a few positive signs.
4-hours RSI (Relative Strength Index) – The RSI is currently just above the 50 level.
Major Support Level – $6,600
Major Resistance Level – $7,500
Charts courtesy –Trading View
Jean Vincent 
Mészáros Gergely 
Carol G. Clouse 
TA does not work, you need to understand the intrinsic value of the assets you are trading. In this case, the value of the asset is zero. Eventually all “supports” will break lower and lower, until it reaches the intrinsic value.
There is no such thing as “intrinsic value”. There is only perceived value. For who is condemned to death no stock has any value, for a fanatic servicing God is the only value, for a masochist pain has value, who want to commit suicide even food and air have no value, (while a good friend may). In fact, without humans who appreciate it even the galaxy has no any value. Intrinsic value is illusion of human mind, and human minds are different, that’s what you need to understand.