Bitcoin price is consolidating above the key $6,640 support. BTC/USD could soon rally once there is a break and close above the $6,800 resistance.
- Bitcoin price is placed nicely above the $6,640 and $6,450 support levels.
- BTC/USD is currently trading in a triangle with resistance at $6,800 on the 4-hour chart.
- The price must break the $6,800 resistance to climb higher towards $7,219.
Bitcoin Price Analysis
After a sharp rally, bitcoin price declined below the $7,000 support level. However, buyers were able to protect losses below the $6,600 support area, which is a positive sign.
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Looking at the 4-hour chart of BTC/USD, the pair declined heavily from the $7,792 swing high and traded below the $7,000 and $6,800 support levels. The decline was such that the price tested the previous important bearish trend line at $6,640, which acted as a support.
The price stayed above the $6,600 support and formed a low at $6,646. Later, a short-term consolidation phase started above $6,600 and the 25 simple moving average (4-hour).
More importantly, there is a triangle pattern forming with resistance at $6,800 on the same chart. Once buyers succeed in clearing the triangle resistance, there could be a push towards the 23.6% Fib retracement level of the last decline from the $7,792 high to $6,646 low.
In the mentioned case, the price will most likely move into a bullish zone and it could even break the $7,000 resistance. Above this, the next target for buyers may be the 50% Fib retracement level of the last decline from the $7,792 high to $6,646 low at $7,219.
On the flip side, if the price fails to break the $6,800 resistance, there could be a bearish reaction. A break below the $6,640 support will most likely push the price towards the $6,450 support.
Overall, bitcoin price seems to be preparing for the next break either above $6,800 or below $6,640. The current price action indicates that there are high chances of an upward move unless sellers gain strength below $6,640 and the 25 SMA.
The market data is provided by TradingView, Bitfinex.