- 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
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.
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.
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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.