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Bitcoin is gaining momentum and it is trading above the $6,500 support against the US Dollar. BTC price is likely to continue higher towards $7,000 and $7,200 in the coming sessions.
- Bitcoin is showing a few positive signs above the $7,500 and $7,400 support levels against the US Dollar.
- The price could grind higher towards $7,000 or even $7,500 if it clears the $6,800 resistance.
- There is a major bullish trend line forming with support near $6,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains well supported on the downside near $6,320 and $6,100.
Bitcoin Remains Supported
After a successful break above the $6,500 resistance, bitcoin extended its rise above $6,700 against the US Dollar. BTC price broke the $6,800 resistance and settled above the 100 hourly simple moving average.
A high is formed near $6,880 and the price is currently correcting lower. It tested the 23.6% Fib retracement level of the recent upward move from the $5,752 low to $6,880 high.
On the downside, there are many supports, starting with the $6,500 area. The next major support is seen near the $6,520 level. It is close to the 50% Fib retracement level of the recent upward move from the $5,752 low to $6,880 high.
More importantly, there is a major bullish trend line forming with support near $6,120 on the hourly chart of the BTC/USD pair. If bitcoin pair starts a major downside correction, the $6,320 and $6,120 levels are likely to act as strong supports in the near term.
Any further losses below $6,120 may perhaps put a lot of pressure on the bulls. The next major support is near the $5,800 and $5,780 levels.
More Upsides?
On the upside, an initial resistance is near the $6,800 area. If bitcoin climbs nicely above the $6,800 and $6,820 resistance levels, there are chances of a sustained upward move.
The next key resistance is near the $7,000 level, above which the price is likely to rise towards the $7,200. Any further upsides may perhaps lead the price towards the $7,500 and $7,550 resistance levels in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising and it is approaching the 60 level.
Major Support Levels – $6,500 followed by $6,320.
Major Resistance Levels – $6,800, $7,000 and $7,200.
