Bitcoin is rising slowly, trading above the USD 6,750 level against the US dollar. The BTC price must take the resistance of $ 7,000 to start a strong rally in the short term.
- Bitcoin is trading in a crucial range below the USD 7,000 resistance area against the US dollar.
- The double-top pattern discussed yesterday is still active, with resistance near $ 7,000 and support of $ 6,400.
- The hourly chart of the BTC / USD pair (Kraken data feed) broke above a short-term contraction triangle with resistance close to $ 6,680.
- The pair will soon start a strong rally above $ 7,000 or it could drop towards $ 6,000.
Bitcoin is approaching the next key break
After building a support base near $ 6,500, Bitcoin rose steadily against the US dollar. The BTC price remained well-offered, rising above the USD 6,650 resistance area plus the simple 100-hour moving average.
The bulls remained in action, protecting a strong bearish reaction below the $ 6,500 support area. Recently there was a break across a short-term contraction triangle with resistance close to $ 6,680 an hour diagram of the BTC / USD pair.
It opened the doors for further upward moves above the 50% fib retracement level of the downward move from the high of $ 6,981 to the low of $ 6,459. Bitcoin price even rose above the USD 6,800 resistance area.
The price is currently fighting near the $ 6,850 level. It appears that the 76.4% fib retracement level of the downward move from the high of $ 6,981 to the low of $ 6,459 is a major hurdle for the bulls.
More importantly, the double-top pattern discussed yesterday is still active, with resistance close to $ 7,000 and support of $ 6,400. If there is a significant break above resistance levels of $ 6,850 and $ 7,000, the price could start a strong rally. The next big resistance is near the $ 7,500 and $ 7,650 levels.
If Bitcoin does not stay above the resistance levels of $ 6,850 and $ 7,000, a further decline could occur. The main prop down is near the $ 6,500 and $ 6,400 levels.
Successful interruption and enforcement below the $ 6,400 support could confirm the double-top pattern, and the price is likely to fall towards the $ 6,000 support.
Hourly MACD – The MACD is currently losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD corrects down towards 55 and 50.
Major support levels – $ 6,650, followed by $ 6,500.
Major resistance levels – $ 6,850, $ 7,000 and $ 7,200.
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