Bitcoin Price Analysis: BTC Surges 9% And Will Set Up A Strong Rally IF We Can Close Above This Pattern

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Bitcoin BTC
Image Courtesy of Reuters
  • Bitcoin saw an epic 9% price increase over the past 24 hours of trading as the cryptocurrency finally breaks above $6,800.
  • The cryptocurrency had traded higher to reach as high as $7,250 but quickly came back down.

Bitcoin increased by a whopping 9% over the past 24 hours of trading as the cryptocurrency surged to a high of around $7,250. It has since dropped lower but is battling to remain above the $6,800 level.

If Bitcoin can actually close above $6,800, this should set up a fantastic 2 weeks ahead as it would be breaking a consolidation pattern that has trapped the cryptocurrency since the market collapse.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

BTC/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can see Bitcoin breaking above the triangle today as it reached a high above $7,000. We can see that it even broke slightly past strong resistance at $7,174 which is provided by a bearish .618 Fibonacci Retracement level. 

After it reached this level, Bitcoin came back down and is now battling to remain above $6,800 so it can close above the triangle.

Short term prediction: NEUTRAL

As the current candle is still yet to close, we can consider Bitcoin neutral at this moment in time. However, if it manages to close above $6,800 and break the upper boundary of the triangle, the market will turn bullish.

If the bulls can close above the triangle, the first level of resistance lies at $7,000. Above this, resistance is located at $7,174 (bearish .618 Fib Retracement), $7,270 (1.414 Fib Extension), and $7,500.

Beyond $7,500, resistance lies at $7,676 (1.618 Fib Extension) and $8,073 (bearish .786 Fib Retracement).

On the other hand, if the sellers push lower, support lies at $6,572 and $6,100 (.382 Fib Retracement). This is followed with support at the lower boundary of the triangle and then at $6,000 and $5,786 (.5 Fib Retracement).

Key Levels

Support: $6,542, $6,100, $6,000, $5,911, $5,786, $5,636, $5,600, $5,500, $5,467 $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436.

Resistance: $6,800, $7,000, $7,174, $7,200, $7,270, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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