Bitcoin is slowly rising and trading above the $6,750 level against the US Dollar. BTC price must claim the $7,000 resistance to start a strong rally in the near term.
- Bitcoin is trading in a crucial range below the $7,000 resistance area against the US Dollar.
- Yesterday’s discussed double top pattern is still active with resistance near $7,000 and support at $6,400.
- There was a break above a short term contracting triangle with resistance near $6,680 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair soon start a strong rally above $7,000 or it might dive towards the $6,000 level.
Bitcoin Approaching Next Key Break
After forming a support base near $6,500, bitcoin started a steady increase against the US Dollar. BTC price remained well bid and climbed above the $6,650 resistance area plus the 100 hourly simple moving average.
The bulls remained in action and protected a strong bearish reaction below the $6,500 support area. Recently, there was a break above a short term contracting triangle with resistance near $6,680 on the hourly chart of the BTC/USD pair.
It opened the doors for more upsides above the 50% Fib retracement level of the downward move from the $6,981 high to $6,459 low. Bitcoin price even climbed above the $6,800 resistance area.
The price is currently struggling near the $6,850 level. It seems like the 76.4% Fib retracement level of the downward move from the $6,981 high to $6,459 low is acting as a major hurdle for the bulls.
More importantly, yesterday’s discussed double top pattern is still active with resistance near $7,000 and support at $6,400. If there is a clear break above the $6,850 and $7,000 resistance levels, the price could start a strong rally. The next major resistance is near the $7,500 and $7,650 levels.
Bearish Scenario
If bitcoin fails to continue above the $6,850 and $7,000 resistance levels, it could start a fresh decline. The main support on the downside is near the $6,500 and $6,400 levels.
A successful break and follow through below the $6,400 support might validate the double top pattern and the price is likely to slide towards the $6,000 support.
Technical indicators:
Hourly MACD – The MACD is currently losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 55 and 50 levels.
Major Support Levels – $6,650 followed by $6,500.
Major Resistance Levels – $6,850, $7,000 and $7,200.
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