Bitcoin price climbed higher and traded above the $7,250 resistance against the US Dollar. BTC/USD started a downside correction and it could test the $7,060 support.
- Bitcoin climbed higher nicely before topping near the $7,345 level.
- BTC/USD broke a key ascending channel with support near the $7,250 level on the 2-hour chart.
- BTC price has likely completed an upward wave and it could now correct to $7,100 or $7,060 in the near term.
Bitcoin price analysis
Bitcoin price remained in a nice uptrend over the weekend as it traded above the $7,120 and $7,250 resistance levels against the US Dollar. BTC/USD traded as high as $7,345 before buyers exhausted and the price corrected lower.
The 2-hours chart of BTC price indicates that the price has likely completed an upward wave from the $6,787 low near the $7,345 level. It started a downside correction and broke the previous resistance turned support at $7,250.
More importantly, there was a break below a key ascending channel with support near the $7,250 level. The price tested the 23.6% Fibonacci retracement level of the last wave from the $6,787 low to $7,345 high, which acted as a support.
The price stayed above the $7,213 level and is currently trading in a range. It seems like the price is now in a short-term bearish zone below $7,280 and it could continue to move down.
Should there be a break below the $7,213 support level, the price is likely to drop towards the next support near the $7,100 zone, which was the previous crucial resistance.
In the mentioned case, there is even chance of bitcoin testing the 50% Fibonacci retracement level of the last wave from the $6,787 low to $7,345 high at $7,066, which is the next strong support for buyers.
On the other hand, if the price trades higher, it must clear the $7,295 resistance and a bearish trend line on the same chart. A proper close above the trend line will most likely push bitcoin price to a monthly high above the recent high of $7,345.