BTC Price Analysis: Bitcoin Breaks Above Key Resistance; Can This Momentum Take Us Above $7000?

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BTC Price Analysis: Bitcoin Breaks Above Key Resistance; Can This Momentum Take Us Above $7000?

  • Bitcoin witnessed a rally between August 14 and September 2 that totaled a 26% price increase.
  • The market found support at the .786 Fibonacci Retracement level priced at $6189 before rebounding.
  • Resistance levels moving forward: $6824, $7000, $7146, $7424
  • Support levels moving forward: $6639, $6453, $6189, $6032

Bitcoin has seen a well-received 4.5% increase in price over the past 24 hour trading period. The cryptocurrency king is currently exchanging hands at a price of $6728, at the time of writing, bringing the 7-day price increase up to a total of 3.69%.

Bitcoin still continues the dominate the cryptocurrency rankings by market cap holding the number 1 position. It currently has a total market cap value of $116.27 billion after Bitcoin finally sees an increase in price over the past 90 trading days totaling 10.51%.

The 65-month-old coin is still trading at a value that is 65% lower than its all-time high price as sentiment begins to change towards the bulls favor.

Let us continue to analyze price action over the short term and highlight any potential support and resistance areas moving forward.

BTC/USD Price Analysis- SHORT TERM – 4HR CHARTS

bitcoin
https://www.tradingview.com/x/7YzvQyjD/

Analysing the market from the short term perspective above, we can see that price action for Bitcoin has recently experienced a bullish run as the market started from a low of $5858 on the 14th of August 2018 and extended to a high of $7429 on the 2nd of September 2018. This was a price increase totaling 26.70% from low to high over the short time period.

We can see that the market continued to rally until it met resistance at a 1.272 Fibonacci Extension level priced at $7384. After hitting the resistance the market rolled over and started to decline.

Price action continued to fall until support was found at short-term .786 Fibonacci Retracement level priced at $6189. We can see that after the market reached this support level it was rejected heavily as price action reversed.

Bitcoin has recently broken back above significant resistance at the .5 Fibonacci Retracement handle priced at $6639 as it makes its way back toward the $7000 handle. We can see that it has recently met further resistance at a short-term 1.414 Fibonacci Extension level (drawn in red) priced at $6775 where the rally briefly witnessed a pause in momentum.

What to expect in coming days?

Moving forward, if the bullish momentum continues beyond the $6775 handle we expect immediate significant resistance above to be located at the 1.618 Fibonacci Extension level priced at $6862. If the bulls can continue even further higher further resistance above is then expected at the 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $6945 and $7027, respectively.

The resistance at the $7027 price handle is further bolstered by the psychological round number resistance provided by the $7000 handle combined with the .236 Fibonacci Retracement priced at $7053. This combined area of resistance will require significant momentum to overcome. If the bulls do penetrate above the $7053 handle then the last two areas of resistance for us to highlight are the 1.618 Fibonacci Extension level (drawn in blue) priced at $7146 followed by the previous high seen at $7424.

Alternatively, if the bears step in and push price action further lower, we expect immediate support to be located at the .5 Fibonacci Retracement level priced at $6639. Support below this can be expected at the .618 Fibonacci Retracement priced at $6453 and the .786 Fibonacci Retracement priced at $6189. The final area of support to highlight is the .886 Fibonacci Retracement level priced at $6032.

Summary
BTC Price Analysis: Bitcoin Breaks Above Key Resistance; Can This Momentum Take Us Above $7000?
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BTC Price Analysis: Bitcoin Breaks Above Key Resistance; Can This Momentum Take Us Above $7000?
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Bitcoin has seen a well-received 4.5% increase in price over the past 24 hour trading period. The cryptocurrency king is currently exchanging hands at a price of $6728, at the time of writing, bringing the 7-day price increase up to a total of 3.69%.
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Author: Yaz Sheikh

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]

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Yaz Sheikh 51 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]