Bitcoin Price Analysis: BTC/USD recovery stalls above $6,000, all eyes set on $7,000
|- Bitcoin price recovery hits a dead end at $6,400 but $6,000 comes out as a strong support area.
- Technical levels align positively in the favor of a short term sideways action in preparation for a run-up to $7,000.
Spot rate: $6,227
Relative change: +44
Percentage change: 0.76%
Trend: Bearish
Volatility: Low
BTC/USD daily chart
Bitcoin price recovery above $6,000 stalled at $6,400. Retreat from the weekly high has found support above $6,000. Buyers are in the driver seat in spite of the bearish correction. However, if the resistance at $6,400 is not cleared soon, selling activity could grip BTC/USD pushing it towards the resistance turned support at $5,500 and the key support at $5,000.
Consequently, a pennant pattern suggests that Bitcoin is not yet safe from potential losses. The pattern’s resistance has to come down for gains towards $7,000 to materialized. However, if the pennant support is shattered, Bitcoin price could spiral under $5,000.
BTC/USD 2-hour chart
Bitcoin price short term analysis epitomizes a digital asset with the strength to sustain a steady uptrend. Besides $6,000 standing out as a critical support area, the moving averages; 50 SMA and the 100 SMA are in line to offer more support. The RSI is horizontal at 70 which means that there still room for growth. A bearish session displayed by Elliot Wave Oscillator could soon give way to a bullish session as long as the price stays above $6,200 (immediate support area).
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