Bitcoin Price Analysis: BTC/USD Likely Basing for Next Move

Bitcoin Price Analysis: BTC/USD Likely Basing for Next Move

Bitcoin price stayed above a crucial support at $6,780-6,800 and recovered against the US Dollar. BTC/USD must break the $7,000-7,040 resistance to resume uptrend.

Important points

  • Bitcoin declined recently and tested an important support near $6,780-6,800.
  • BTC/USD is currently struggling to break a connecting bearish trend line with resistance at $7,000 on the 2-hours chart.
  • BTC price must break the $7,000 resistance to climb higher once gain in the near term.

Bitcoin price analysis

Recently, bitcoin price formed a short-term top at $7,140 and started a downside correction against the US Dollar. It seems like there was a minor double top pattern formed at $7,140 in BTC/USD, resulting in a bearish push.

The 2-hours chart of BTC price indicates that the price declined below the $7,040 support and the $7,000 handle. However, losses were defended near the $6,780-6,800 zone, which was a crucial resistance earlier.

bitcoin
Chart sourced by TradingView, Binance

The price found a strong support near $6,780-6,800 and recovered higher. It traded above the $7,000 level and the 50% Fibonacci retracement level of the last decline from the $7,137 high to $6,784 low.

However, bitcoin buyers were not able to break the $7,040 resistance and the 61.8% Fibonacci retracement level of the last decline from the $7,137 high to $6,784 low. More importantly, there is a connecting bearish trend line in place with resistance at $7,000 on the same chart.

At the outset, the price is clearly struggling to surpass the trend line and $7,000. A proper 2-hour close above the trend line, $7,000, and $7,040 is needed for buyers to take control. Above $7,040, the price is likely to accelerate higher towards the $7,140 high.

If buyers succeed in clearing the $7,140 high, there could be a sharp rise towards the $7,300 level. On the other hand, the $6,780-6,800 support holds a lot of significance. A clear downside break below $6,780 could increase bearish pressures on BTC price.

To sum up, bitcoin price is reaching the next break either above $7,040 or below $6,780 in the near term. Technically, the 2-hour BTC/USD RSI is signaling short-term weakness below 50.

Also, read: Bitcoin Stumbles at $7k But this Study Declares BTC Price Gonna Hit $32,000

Summary
Bitcoin Price Analysis: BTC/USD Likely Basing for Next Move
Article Name
Bitcoin Price Analysis: BTC/USD Likely Basing for Next Move
Description
Bitcoin price stayed above a crucial support at $6,780-6,800 and recovered against the US Dollar. BTC/USD must break the $7,000-7,040 resistance to resume uptrend.
Author
Publisher Name
COINGAPE
Publisher Logo
Latika Mehrotra 71 Articles

Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

Follow Latika @
Show Comments
Latika Mehrotra 71 Articles

Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]

Follow Latika @