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Bitcoin is slowly gaining momentum and it broke the $7,000 resistance against the US Dollar. BTC is showing positive signs and it is likely to surge towards $7,500 and $8,200.
- Bitcoin is up more than 5% from the $6,500 swing low formed this past week.
- The bulls are gaining momentum above $7,500 and the 100 simple moving average (4-hours).
- There was a break above a major declining channel with resistance near $7,040 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently trading in a bullish zone and it could rise further towards $7,500 and $8,200.
Bitcoin is Gaining Momentum
This past week, bitcoin regained strength after trading to a new weekly low at $6,482 against the US Dollar. BTC price traded higher steadily and surpassed the $6,800 resistance area.
The bulls managed to lead the price above the main $7,000 resistance area and the 100 simple moving average (4-hours). The price even climbed above the 50% Fib retracement level of the last key decline from the $7,470 high to $6,482 low.
More importantly, was a break above a major declining channel with resistance near $7,040 on the 4-hours chart of the BTC/USD pair. Bitcoin price is now trading nicely above the $7,200 pivot level.
It is testing the 76.4% Fib retracement level of the last key decline from the $7,470 high to $6,482 low. Therefore, there are high chances of more gains above the $7,300 and $7,400 levels.
An initial resistance is near the $7,500 level, above which the price is likely to accelerate higher. The next key hurdles on the upside are near the $8,000 level. Any further upsides might call for a test of the $8,200 level.
Downside Correction
If bitcoin fails to continue higher or struggles to clear the $7,500 resistance, then it could start a downside correction in the near term. An initial support is near the $7,050 level.
The first major support is near the $6,960 level and the 100 simple moving average (4-hours). Any further losses may perhaps lead the price back towards the $6,500 support area.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower from the 70 level.
Major Support Level – $6,950
Major Resistance Level – $7,500
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