Key Points
- Bitcoin price surged and broke the $6,800 and $7,200 resistance levels against the US Dollar.
- There is a short-term ascending channel forming with support at $7,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The BTC/USD pair is currently consolidating gains near $7,500 and it is poised to extend upsides.
Bitcoin price climbed above the $7,500 level against the US Dollar. BTC/USD may correct a few points, but it remains in an uptrend above $7,120.
Bitcoin Price Analysis
Bitcoin price traded further higher and broke a significant resistance near $6,800 against the US Dollar. The BTC/USD pair gained bullish momentum and cleared the $7,000 resistance. It gained more than 8% and traded above the $7,500 level. A high was formed recently at $7,570 before the price started consolidating gains. BTC is currently trading in a range around the $7,500 level with many positive signs.
On the downside, an initial support is near the 23.6% Fib retracement level of the last leg from the $6,670 low to $7,570 high. More importantly, there is a short-term ascending channel forming with support at $7,400 on the hourly chart of the BTC/USD pair. Should there be a downside break below the channel support, the price could trade towards the $7,200 support. Below this, the next support is the 50% Fib retracement level of the last leg from the $6,670 low to $7,570 high at $7,120.
Looking at the chart, the price is placed nicely in an uptrend above $7,200. There are high chances of more gains above the $7,570 level in the near term. The next resistance is close to $7,850, which is also a pivot zone. In the short term, there may well be a few corrective moves, but buyers remain in control as long as the price is above $7,120.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly reducing its bullish slope.
Hourly RSI (Relative Strength Index) – The RSI is currently flat in the overbought zone.
Major Support Level – $7,358
Major Resistance Level – $7,570
