Bitcoin Price Analysis: BTC/USD Nurtures A Potential Breakout Targeting $7,600

Bitcoin, BTC, Bitcoin Volatility
Source: Quote Inspector, Flickr

Bitcoin Price Analysis: BTC/USD Nurtures A Potential Breakout Targeting $7,600

  • Bitcoin attempts a breakout from the falling wedge pattern.
  • The buyers have no choice but to defend $7,200 support to avoid losses under $7,000.

Bitcoin price action has been drab since the session commenced on Wednesday. The bulls are consolidating the losses, following the retraction from the recent high at $7,654. I expected the bulls to hold the price above $7,500. However, selling activity overwhelmed the battered bulls leading to an extended drop towards $7,200.

It is clear that giving u the support at $7,500 for the second time was a bad idea on the part of the bulls. For now, it is essential that they defend $7,200 support for their dear life. Otherwise, Bitcoin price could disintegrate towards the low in November around $6,530. Moreover, many analysts believe that Bitcoin will dive into the region around $6,000 before any significant recovery takes place.

BTC/USD 1-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview

Meanwhile, the formation of a short term falling wedge pattern suggests that Bitcoin could soon reverse the trend and work to regain the lost ground towards $8,000. The Relative Strength Index doubles down on improving buying power.

Looking at the RSI, I spot a continued upside correction from a low formed at 25.35. In the event the movement to the north continues, BTC could experience a ripple effect as it scales the resistance at $7,400, $7,500 and $7,600. Apart from the short-term support at $7,200, Bitcoin downside is also supported at $7,000, $6,800 and $6,530.

Bitcoin Technical Levels

Spot rate: $7,231

Relative change: 13.22

Percentage change: 0.19%

Trend: Bullish

RSI: Strongly bullish

Summary
Bitcoin Price Analysis: BTC/USD Nurtures A Potential Breakout Targeting $7,600
Article Name
Bitcoin Price Analysis: BTC/USD Nurtures A Potential Breakout Targeting $7,600
Description
Bitcoin attempts a breakout from the falling wedge pattern. The buyers have no choice but to defend $7,200 support to avoid losses under $7,000.
Author
Publisher Name
Coingape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Post your comment...
John Isige 346 Articles

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Follow John @