Bitcoin price analysis: BTC/USD retreats below $6,500 while the cryptocurrency market surges to $200 billion

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  • Bitcoin loses balance above $6,500 but finds a stable ground at $6,420.
  • Support areas are highlighted at $6,400 (50SMA) and $6,200.

Bitcoin price made a pleasant comeback from the support at $6,240 on Wednesday. The bullish trend continued on Thursday as Bitcoin easily made it above $6,500. However, the movement north was limited at $6,520. Consequently, the trading on Friday saw another brief spike to the highs of $6,582. Unfortunately, the bears lost momentum giving sellers a chance to enter. At the time of press, Bitcoin has trimmed gains below $6,500.

 The crypto market has been on a downward roll as well. In fact, it tumbled to $189 billion on September 11. Bitcoin dominance, on the other, has continued to rise amid the latest altcoin crash that was led by Ethereum. The slight recovery this week has seen the total market capitalization rise up to $200 billion. However, at the moment, it stands at $198 billion because of the correction from the intraday highs.

For the time being, Bitcoin has found a support at $6,420 and is making attempts to retrace steps above the 61.8% Fib retracement level resistance highlighted at $6,440. The buyers are intent on correcting above $6,500 again, although the prevailing trend is bearish. The retreating stochastic oscillator confirms the negative pressure. Moreover, the MACD momentum indicator has broken below the +40 range and is heading toward 0.0. $6,400 is a key support area, besides it coincides with the hourly 50SMA. The next significant support is at $6,240 while $6,200 is strong enough to halt extended declines.

BTC/USD hourly chart

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