Bitcoin failed to hold the Key Support, Could Test $6,275

After trading upward for a few days crypto market again is in red. The price drop is broad-based and there is nothing which the technical analysis is indicating. It seems that the market in a normal process of consolidation.

Bitcoin is under pressure again and unable to hold its key support level of $6,590. It was predicted that if the top cryptocurrency will go below the key support level of $6,590 then it could test the levels of $6,380 and $6,275. Bitcoin failed to hold at the support level and declined below $6,500 against the US dollar. Now it is expected that Bitcoin will decline towards the next support level at $6,275.

These movements allow the investors to know at what price the market can stabilize in order to get back to the bullish trend. Yesterday BTC/USD pair started trading in a downward movement and traded below $6,620 and $6,600 support levels. In the hourly chart for BTC/USD pair, there was a strong support at $6,550 but the pair failed to hold at that support level and declined further. There was a break below the bearish pattern with the support of $6,550 on the hourly chart. There was also a break below the 50% Fib retracement level of the last wave from the low of $6,102 to high of $6,833.

If the sideways movement for BTC/USD pair continues it can test the major support levels of $6,381 and $6,275. The support level of $6,275 is the 76.4% Fib retracement level of the last wave from low of $6,102 to high of $6,833. At this time Bitcoin enthusiasts are also under pressure and they do not want to take the risk because right now Bitcoin is at a position where it can go down further. On the upside, previous support levels of $6,560 and $6,590 are major hurdles for BTC buyers in the short term. Right now for BTC/USD pair $6,660 is the major resistance level where the investors feel pressure and start selling.

If we consider the current situation there is a major support at $6,275 and the major resistance at $6,590.