Here’s Why Bitcoin Bulls Aim Larger Rally Above $7K In Near Term

Aayush Jindal

1 year ago

2 mins read

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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.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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