Bitcoin price analysis: BTC/USD testing $6,500 amid news that Coinbase contemplates creating crypto ETF

Bitcoin has recovered from Thursday's low at $6,272 to trade at $6,5000 by press time. The digital coin No.1 gained about 1% in recent 24 hours, though the bullish momentum is too weak so far.

The largest US cryptocurrency exchange Coinbase is looking into cryptocurrency ETF launch and discussing the matters with BlackRock, Business Insider reports.  By creating a crypto ETF, Coinbase will join the ranks of other companies seeking to launch their own ETFs, including Gemini, Bitwise Asset Management, and VanEck.

Coinbase aims to create a cryptocurrency product that will suit retail investors, allowing them to tap the volatile digital assets market. The company held conversations with BlackRock's blockchain experts to get their advice on launching exchange-traded products. 

Meanwhile, BlackRock is not interested in creating a crypto related fund, due to low customer interest. Moreover, earlier the company's CEO Larry Fink referred to bitcoin as an index for money laundering.

Bitcoin's technical picture

From the short-term perspective, Bitcoin needs a clear break above $6,500 for the upside to gain traction. The next resistance comes at $6,717 (SMA50, 1-hour), followed by $6,800 (38.2% Fibo retracement level). On the downside, the first support is produced by $6,400-$6,370 handle area. If it is cleared, the sell-off may be extended towards Thursday's low at $6,272.

BTC/USD, 1-hour chart