Key Points
- Bitcoin price made a nice upside move and broke the $6,750 and $6,775 resistance levels against the US Dollar.
- There is a crucial bullish trend line in place with support at $6,780 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently consolidating gains and it looks set for more gains above $7,000 in the near term.
Bitcoin price gained bullish momentum above the $6,750 resistance against the US Dollar. BTC/USD is now preparing for more upsides above $7,000.
Bitcoin Price Analysis
Yesterday, we discussed a possible break above $6,750 in bitcoin price against the US Dollar. The BTC/USD pair did trade higher and buyers succeeded in clearing the $6,750 and $6,775 resistance levels. The price even broke the $6,850 level to move into a bullish zone. A new weekly high was formed at $6,957 and the price is currently placed well above the 100 hourly simple moving average.
Recently, the price corrected lower below the $6,900 level. It tested the 23.6% Fib retracement level of the last wave from the $6,567 low to $6,957 high. However, downsides were limited and the price was well bid near the $6,850-6,860 zone. Below this, the next major support is near the $6,800 level. More importantly, there is a crucial bullish trend line in place with support at $6,780 on the hourly chart of the BTC/USD pair. The same trend line coincides with the 50% Fib retracement level of the last wave from the $6,567 low to $6,957 high. Therefore, if the price corrects lower from the current levels, it is likely to find support near $6,800.
Looking at the chart, the current price action is positive above $6,850 for bitcoin price. It seems like the price is preparing for more gains above $7,000 and $7,050 levels in the short term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed nicely in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is now near the 72 level.
Major Support Level – $6,800
Major Resistance Level – $7,000
