- Bitcoin increased by a total of 6% today as the cryptocurrency makes its way toward $7,200.
- The cryptocurrency has now broken above the previous period of consolidation as the buyers start to gain control.
Bitcoin has now cleanly broken above the upper boundary of the previous ascending triangle pattern as it takes out the resistance at the $7,000 level. Bitcoin increased by a total of 6% today to reach a high of around $7,225 as the buyers start to take control.
The crucial thing to look out for today is the closing price for Bitcoin. We need a close above $7,000 at the very least to confirm that the bulls are indeed in action moving forward. However, with the recent uptick in volume, we can safely assume that it should close above $7,100.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Analyzing the daily chart above, we can see the clear breakout of the triangle occurring as Bitcoin stormed above $6,800 to reach as high as $7,200. The cryptocurrency is currently battling with resistance at a bearish .618 Fibonacci Retracement level priced at $7,174. This bearish Fib Retracement is measured from the March high to the March low.
Short term prediction: Bullish
The breakout above the upper boundary of the triangle has now put Bitcoin into a short term bullish trend.
Toward the upside, the first level of resistance lies at $7,27 (1.414 Fib Extension). Above this, resistance can be found at $7,500, $7,676 (1.618 Fib Extension), and $8,073 (bearish .786 Fib Retracement).
Toward the downside, support lies at $7,100, $7,000, $6,800, and $6,500.
Support:$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.
Resistance: $7,270, $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.