Categories: Price Analysis

Bitcoin Price Analysis: BTC/USD Signaling Bullish Bias Toward $7,000

Bitcoin price surged above the $6,700 resistance against the US Dollar. BTC/USD could continue to move higher towards the $6,900 and $7,000 resistances.

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Important points

  • Bitcoin gained bullish momentum recently after it broke the $6,450 and $6,620 resistances.
  • BTC/USD broke a crucial contracting triangle with resistance at $6,480 on the 2-hours chart.
  • BTC price is currently trading well above $6,700 and it could trade towards $7,000 in the near term.

Bitcoin price analysis

Bitcoin price started a solid upward move from the $6,340 swing low against the US Dollar. BTC/USD rallied and broke the $6,440, $6,550 and $6,620 resistance levels to move into a bullish zone.

The 2-hours chart of BTC price indicates that buyers gained traction after the price settled above the $6,400 resistance and the 100 simple moving average (2-hours).

Chart sourced by TradingView, Binance

There were back-back to bullish candles above the $6,500 level and the price rallied past $6,700. During the rise, bulls surpassed a crucial contracting triangle with resistance at $6,480 on the same chart, opening the doors for a decent rally.

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The recent high was formed at $6,771 and the price is currently consolidating gains above $6,700. An initial support is the 23.6% Fib retracement level of the last wave from the $6,327 low to $6,771 high.

If the price continues to move down, the previous resistance zone near the $6,620 level may act as a support. Below this, the next major support is $6,550 and the 50% Fib retracement level of the last wave from the $6,327 low to $6,771 high.

As long as the price is above the $6,550 level and the 100 SMA, there could be more gains above the $6,771 high in the near term. BTC buyers might attempt to push the price towards the $6,900 and $7,000 resistance levels.

Overall, the current price action is positive above $6,550 for bitcoin. There could be a few swing moves, but as long as bulls are active, there are high chances of a test of the $7,000 barrier in the near term. Above $7,000, the price could find resistance near $7,150.

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Latika Mehrotra

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 latika@coingape.com

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