Bitcoin Price Analysis: BTC/USD Rockets To $7,300 But Will $6,800 Support Hold?

• Bitcoin price for the first time since the crash on March 12 steps above $7,000 and tests the resistance at $7,300.
• BTC/USD bulls have a task to defend the support at $6,800 and 61.8% respectively as they are key for gains above $7,000.

Bitcoin price finally crossed the barrier at 7,000 and extended the bullish action above $7,200. The return of the bulls in the American session followed a technical breakout above a key 61.8% Fibonacci level taken between the last swing high at $7,292 to a swing low at $5,849. The surge to the weekly high was rapid just as the immediate reversal currently testing the 61.8% Fibo support level.

At the time of writing, Bitcoin is trading at $6,804 after a 0.01% subtle loss on the day. The Asian session on has remained largely bearish but increased volatility is expected in the European session as the bulls focus on pulling the price above $7,000.

The major task for the buyers is to defend the support at the 61.8% Fibo if not above $6,800. The immediate downside is also supported by the accelerated trendline (broken). The 1-hour chart shows the price significantly above the moving averages; whereby the 50 SMA at $6,553 and the 100 SMA at 6,457 are in line to offer support as need arises. The widening gap between the 50 SMA and the 100 SMA suggests that buyers are in a position of influence compared to the bears in spite of the retreat from the weekly high.

BTC/USD 1-hour chart

Other technical indicators such as the Relative Strength Index (RSI) have begun to range in support of a consolidative movement. The RSI is holding at 56.28 after a slump from highs around 83.86. As long as the indicator keeps the position above 50, buyers will have the potential to force gains above $7,000 in the near term.

Bitcoin Key Daily Levels

Spot rate: $6,804

Relative change: -1.65

Percentage change: -0.01%

Trend: Bearish

Volatility: Low