- Bitcoin saw an impressive 23% price increase over the past 24 hours of trading as the cryptocurrency reaches above $6,700.
- Bitcoin is leading the charge and it is allowing a lot of the cryptocurrency market to recover in its path.
Bitcoin continues to buck the overall trend for the economy as it increases by an enormous 24% today. The cryptocurrency broke out from a short term consolidation pattern that we were tracking over the past week and started to surge higher. It even broke above $7,000 today before coming back lower.
This price explosion has now allowed the market to become more optimistic for the future of Bitcoin as we continue to approach the next Bitcoin halving which will see the block reward slashed in half.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Analyzing the daily chart above we can see that Bitcoin had closed the day yesterday at the $6,175 resistance level. It went on to continue higher today as it broke above resistance provided by the bearish .5 Fibonacci Retracement level priced at $6,542.
The cryptocurrency price increase even managed to allow Bitcoin to break above $7,000, however, it ran into resistance at the bearish .618 Fibonacci Retracement level priced at $7,174 before it came back down the to the current price of $6,766.
Short term prediction: NEUTRAL
Although many people might think we are bullish, the market is now considered to be neutral. It would need to break above $8,000 before we could start to consider a bullish market. However, the recent price explosion has started the road to recovery for Bitcoin.
Looking ahead, if the buyers continue to drive the price higher, the first level of resistance lies at $7,000. This is then followed by resistance at $7,174 (bearish .618 Fib Retracement). Above this, resistance can be found at $7,270 (1.414 Fib Extension), $7,500, and $7,676 (1.618 Fibonacci Extension level). Additional resistance is then expected at $8,000 and $8,073 which is provided by the bearish .786 Fibonacci Retracement level.
Toward the downside, the first level of support lies at $6,542. Beneath this, support lies at $6,400, $6,175, $6,000, and $5,911.
Support: $6,542, $6,400, $6,175, $6,000, $5,911, $5,600, $5,500, $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436..
Resistance: $7,000, $7,174, $7,200, $7,270, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.
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.
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. Follow him at @TcmYaz.