Bitcoin Price Analysis: Can The Next Bullish Rally Push Price Above $7000?

Bitcoin Price Analysis
Source By: TradingView

Bitcoin Price Analysis: Can The Next Bullish Rally Push Price Above $7000?

Bitcoin has seen a small 1.66% increase in price over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $6597 not giving much way in terms of movement over the past 7 trading days.

Key Highlights:

  • Since our last analysis, Bitcoin had dropped below support at $6557 to find further expected support at the $6453.
  • The market has since rebounded to re-enter the previously established trading range.
  • Support Levels Moving Forward; $6557, $6453, $6383, $6259, $6189, $6032, $5858
  • Resistance Levels Moving Forward; $6639, $6665, $6715, $6775, $6824, $6862, $6945, $7027

The number 1 ranked cryptocurrency has a market cap currently valued at a price of $114 billion. The 65-month-old coin is currently trading at a value that is 66% lower than its all-time high price after seeing a small 2.50% increase over the past 30 trading days.

Let us continue to analyse price action for Bitcoin over the short t highlight any potential support and resistance zones.

Bitcoin Price Analysis

BTC/USD – SHORT TERM – DAILY CHART

Bitcoin Price Analysis
Source By: TradingView

Since our last analysis, Bitcoin has made a movement lower but has since recovered to trade within the previous narrow trading range. In our last analysis, the market was trading at support provided by the short term .382 FIbonacci Retracement level priced at $6557.

We can see that as the week progressed, the bears had pushed price action below the support as it continued to drop until further support was located at the expected longer term .618 Fibonacci Retracement level (drawn in black) priced at $6453. The market had managed to hold at this support after being tested a few times which eventually caused price action to rally back into the previous trading zone.

Price action is now trading, once again, in the narrow range marked by the short term .382 Fibonacci Retracement (drawn in green) priced at $6557 as the lower boundary and the longer termed .5 Fibonacci Retracement level (drawn in black) priced at $6639 as the upper boundary of the range.

What can we expect in the next few days?

If the bullish momentum can continue and push the market above the upper boundary of the trading range then we can expect immediate resistance to be located at the previous 1.272 and 1.414 Fibonacci Extension levels priced at $6715 and $6775, respectively.

If the bulls can continue to push price action even higher then more significant resistance can be expected at the longer termed .382 Fibonacci Retracement (drawn in black) priced at $6824 followed by the 1.272 Fibonacci Extension level (drawn in blue) priced at $6945.

Alternatively, if the bulls re-enter the market and push price action below the lower boundary of the range priced at $6557 then we can expect immediate Signifcant support located below at the .618 Fibonacci Retracement level priced at $6453 followed by more significant support further lower at the .786 Fibonacci Retracement level priced at $6189.

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Bitcoin Price Analysis: Can The Next Bullish Rally Push Price Above $7000?
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Bitcoin Price Analysis: Can The Next Bullish Rally Push Price Above $7000?
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Bitcoin Price Analysis: Bitcoin has seen a small 1.66% increase in price over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $6597 not giving much way in terms of movement over the past 7 trading days.
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Yaz Sheikh 49 Articles

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Reach out to him at [email protected]