Key Points
- Bitcoin price formed a strong support base near $6,450 and jumped higher against the US Dollar.
- There is a major ascending channel in place with support at $6,600 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair remains supported and it is likely to move further higher above the $7,000 level in the near term.
Bitcoin price is gaining momentum above $6,600 against the US Dollar. BTC/USD could accelerate gains above $7,000 to target the $7,250 level.
Bitcoin Price Trend
This past week, there was a downside correction below the $6,700 support in bitcoin price against the US Dollar. The BTC/USD pair traded below the $6,500 support level, but declines were protected. The $6,400-6,450 support zone acted as a support and prevented declines. A support base was formed and the price jumped above the $6,600 and $6,700 resistance levels. There was also a break above the 76.4% Fib retracement level of the last decline from the $6,795 high to $6,454 low.
It opened the doors for more gains and the price traded above the $6,800 resistance. However, there was no test of the 1.236 Fib extension level of the last decline from the $6,795 high to $6,454 low. Therefore, there are high chances that the price may accelerate gains above $6,800 in the near term. The next resistance is at $6,875. Above this, the price may move above the $7,000 barrier to test the 1.618 Fib extension level. In the short term, there could be a downside correction towards the $6,700 support. More importantly, there is a major ascending channel in place with support at $6,600 on the 4-hours chart of the BTC/USD pair.
Looking at the chart, the price is placed nicely in an uptrend above $6,600. The next targets may well below $6,875, $7,000 and $7,250.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is now placed well above the 60 level.
Major Support Level – $6,600
Major Resistance Level – $7,000
