Technical Indicators:
Support Level: $6850, $6500, $6000
Resistance Level: $7400, $7500
Key Points:
- Bitcoin price surged massively after clearing above $6800 resistance level
- BTC price has increased more than 25% in just a few days and recorded a new yearly high around $7450 today.
- A bullish pattern is being formed with support around $6750 on the hourly chart.
- Currently, the momentum seems quite bullish and BTC is moving towards $7800 range, however, there are still chances of a sudden downward move.
Bitcoin Price Analysis:
SUMMARY: Bitcoin price increased massively above $7000. Currently, it is quite unclear whether the bear market is over or is it a fake run, however, BTC seems to be approaching the $7500 and $7600 levels soon from where it might start correcting downwards massively towards $6800 support.
Bitcoin started a major bull run after breaking above the $6800 resistance this week which was being termed as the most critical resistance zone. On the way, BTC cleared through every possible resistance around $6000, $6200, $6400, $6500 and $6600. Soon, BTC even moved over the $7000 resistance level and also settled above the 100 hourly SMA and $7200. A new yearly high was also recorded above $7450.
Soon bitcoin price started to correct downwards, however, the support around $6850 proved quite strong and pushed the price back upwards. Currently, BTC is trading around $7400 with the bulls trying to break above the resistance formed here.
If bitcoin price is able to break and settle above this range, it might soon test the $7500 and $7600 resistance levels, However, a bull market cannot be confirmed yet and BTC needs to settle well above the $6800 level for at least a few days before it can be confirmed. According to some analysts, the current market is being run by cryptocurrency exchanges and large BTC bulls and for them, profit-making is the only motive and hence there can be a sharp decline in the price of Bitcoin in the upcoming days. However, the current momentum seems quite bullish.
The chart shows that bitcoin price is currently moving upwards with a bullish momentum after it broke above the $6800 resistance level. BTC might correct downwards in the short term towards $6800 and $6500 levels. Bitcoin price needs to settle well above $6800 level for a few days in order to confirm a bull market.
