• Bitcoin increased by a small 1.5% today as the cryptocurrency trades at around $7,323.
• The cryptocurrency recently broke above resistance at $7,175 and is using this as support moving forward.

This week saw Bitcoin surging above the upper boundary of the previous consolidation pattern as the cryptocurrency penetrated above $6,800. It went on to break above resistance at $7,000 and $7,175 to reach the current trading level at $7,323.

A close above $7,400 would allow Bitcoin to continue further higher during the week to reach as high as $8,000 over the next few days.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

Market Overview

Analyzing the daily chart above, we can see that Bitcoin cleanly broke the previous ascending triangle over the past 3-days as it went on to break above $7,000. It recently broke up above resistance at $7,175 which is provided by a bearish .618 Fibonacci Retracement level and is now using this as support moving forward.

Short term prediction: Bullish

Bitcoin is now certainly bullish in the short term but must break above $8,000 to turn bullish over a longer period of time. 

If the buyers do continue higher above $7,500, the first level of resistance is located at $7,676 which is provided by a 1.618 Fibonacci Extension level. Above this, resistance lies at $8,073 (bearish .786 Fib Retracement), $8,200, and $8,600 (bearish .886 Fib Retracement).

On the other side, the first level of support is located at $7,175. Beneath this, support lies at $7,000, $6,800, $6,500, and $6,319.

The RSI has now broken above the 50 level to show that the buyers have now taken control of the market momentum.

Key Levels

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