Bitcoin (BTC) Price Near Inflection Point: Fresh Increase Likely

Bitcoin price declined heavily yesterday and traded close to the $6,650 support against the US Dollar. The price traded as low as $6,645 and it is currently recovering towards the $7,400 level. There is a key bearish trend line forming with resistance at $7,400 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair needs to clear the $7,400 and $7,512 resistance levels to start a strong upward move.

Bitcoin price seems to be forming a new support base above $7,000 against the US Dollar. BTC is likely forming a decent bottom and it could climb higher above $7,400 and $7,500.

Bitcoin Price Analysis

Yesterday, we saw a significant downside correction in bitcoin price below the $8,000 and $7,500 supports against the US Dollar. The BTC/USD pair declined heavily and even broke the $7,000 support and 100 hourly simple moving average. Finally, there was a spike towards the $6,650 support area, where buyers emerged. A swing low was formed at $6,645 and the price recently started an upside correction. It traded above the $7,000 and $7,050 resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $8,050