Bitcoin Price Analysis: Is This Break Real in BTC/USD?

bitcoin

Bitcoin Price Analysis: Is This Break Real in BTC/USD?

Bitcoin price managed to move above the $6,320 resistance against the US Dollar. However, BTC/USD bulls are fighting hard to push the price above $6,625.

Important points

  • Bitcoin settled above the $6,320 resistance, but it failed to gain bullish momentum.
  • There was a break above a significant bearish trend line resistance near $6,340 on the 2-hours chart. 
  • BTC price needs to surpass a strong sell zone near the $6,625 zone to gain traction.
bitcoin
Chart sourced by TradingView, Binance

Bitcoin price analysis

There was a decent rise in bitcoin price during the past few hours from the $6,176 swing low. BTC/USD slowly and steadily climbed higher and broke a major resistance near $6,320 and $6,400 (as discussed in the last analysis).

The 2-hours chart of BTC price cleared the $6,320 resistance and also settled above the 100 simple moving average (2-hours). It opened the gates for more upsides and the price moved past $6,410.

Chart sourced by TradingView, Binance

The price also surpassed the 38.2% Fibonacci retracement level of the last downside move from the $7,148 high to $5,876 low. More importantly, there was a break above a significant bearish trend line resistance near $6,340 on the same chart.

The price spiked above the $6,500 and $6,520 levels on a few occasions, but buyers failed to retain gains. Additionally, there was no 2-hour close above the 50% Fibonacci retracement level of the last downside move from the $7,148 high to $5,876 low.

Therefore, the recent break, for now, can be considered as a normal corrective move above $6,400. Having said that, once the price settles above the stated fib level and the $6,625 resistance, there could be more gains in the near term.

On the other hand, if the price corrects lower, the broken resistance at $6,320 and the 100 simple moving average (2-hours) are likely to act as supports.

To sum up, the recent break above $6,320 and the trend line is positive, but only a convincing break above $6,625 could clear the path for further upsides towards the $6,875 and $7,003 levels in the near term. Technically, the 2-hour BTC/USD is currently near 58 with a few positive signs.

Also, read: US Investors can Now Buy Bitcoin through their Retirement & Brokerage Accounts

Summary
Bitcoin Price Analysis: Is This Break Real in BTC/USD?
Article Name
Bitcoin Price Analysis: Is This Break Real in BTC/USD?
Description
Bitcoin price managed to move above the $6,320 resistance against the US Dollar. However, BTC/USD bulls are fighting hard to push the price above $6,625.
Author
Publisher Name
COINGAPE
Publisher Logo
Show Comments
Latika Mehrotra 71 Articles

Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

Follow Latika @