Bitcoin is up more than 2% and it is gaining bullish momentum against the US Dollar. BTC price is likely to surge 4%-5% if it clears the main $7,000 resistance area.
- Bitcoin is showing a lot of positive signs above the $6,700 support against the US Dollar.
- The price is approaching the main $7,000 resistance and breakout zone.
- There was a break above a major bearish trend line with resistance near $6,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally significantly if there is a clear break above the $7,000 resistance area.
Bitcoin Turns Green
In the past days, bitcoin remained well bid above the $6,660 and $6,700 support levels against the US Dollar. BTC bears made many attempts to push the price below the $6,666 support, but they failed.
The recent low was formed near $6,650 before the price started a fresh increase. There was a break above the $6,765 resistance level and the 100 hourly simple moving average.
More importantly, there was a break above a major bearish trend line with resistance near $6,800 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading comfortably above the $6,800 and $6,850 levels.
It is currently testing the 50% Fib retracement level of the key decline from the $7,263 high to $6,612 swing low. The main resistance on the upside is near the $7,000 level, which acted as a key hurdle for the bulls on a few occasions.
The 61.8% Fib retracement level of the key decline from the $7,263 high to $6,612 swing low is also near the $7,015 level to act as a resistance. Therefore, a successful break above the $7,000 and $7,015 levels is likely to start a strong rally in the coming sessions.
The next major resistance is near the $7,200 level, above which the bulls are likely to aim a test of the $7,500 level.
Another Rejection?
If bitcoin fails again to clear the $7,000 resistance, it could decrease the chances of a strong rally. An initial support is near the $6,800 level, below which the price might decline towards $6,765.
The main support is still near the $6,660 level, below which the bulls are likely to lose control and the price could dive towards the $6,200 and $6,000 levels.
Technical indicators:
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level.
Major Support Levels – $6,800 followed by $6,600.
Major Resistance Levels – $7,000, $7,200 and $7,500.
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