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

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

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.