EagleFX

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 Surge

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.

Bitcoin Price Analysis BTC Chart

Click to Enlarge Chart

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.


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Posted by Dr. Latika Mehrotra

Ph.D in Data Mining, Blockchain enthusiast, and passionate about technology and science. Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities.


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