After a close above the $5,000 pivot level, bitcoin extended its rise against the US Dollar. BTC price traded above the $5,400 resistance and the 100 hourly simple moving average.
However, the price faced a strong selling interest above the $5,500 level. The bulls made a couple of attempts to gain pace above $5,500 and $5,600, but they failed. The last high was near $5,568 and the price is currently correcting lower.
It traded below the 23.6% Fib retracement level of the upward move from the $4,326 low to $5,568 high. The price even spiked below the $5,100 level and the 100 hourly simple moving average.
On the downside, the $5,000 area is acting as a strong support. The 50% Fib retracement level of the upward move from the $4,326 low to $5,568 high is also near the $4,947 level to provide support.
There is also a key ascending channel forming with support near $5,100 on the hourly chart of the BTC/USD pair. Therefore, a downside break below the channel support and the $5,000 support area could start a strong decrease.
The next support is near the $4,800 level, below which the price may perhaps continue to move down towards the $4,600 and $4,500 levels.
If bitcoin climbs higher above the $5,500 resistance and the channel upper trend line, the bulls could gain control. The next resistance is near the $5,600 level, above which the bulls are likely to aim a test of the $6,000 resistance in the near term.