Bitcoin price analysis: BTC/USD stays above $6,700, but momentum is fading away
|- BTC/USD is rangebound after Monday's growth.
- Recovery may prove to be short-lived.
While Bitcoin managed to break above a number of technically important levels on Monday to trade at $6,711, further upside may be limited as long as there is no clear follow through on Tuesday. The digital coin No. 1 has recovered from $6,135 reached on June 13, but the upside momentum is fading away.
Bank of International Settlements report published on weekend has been largely discussed by cryptocurrency community, but its influence on price momentum proved to be limited. BIS researches had a wild theory that Bitcoin would break Internet due to swelling storage requirements and associated communication volumes.
“To process the number of digital retail transactions currently handled by selected national retail payment systems, even under optimistic assumptions, the size of the ledger would swell well beyond the storage capacity of a typical smartphone in a matter of days. But the issue goes well beyond storage capacity and extends to processing capacity. The associated communication volumes could bring the internet to a halt, as millions of users exchanging files on the order of magnitude of a terabyte,” said the Swiss-based institution.
Bitcoin's technical picture
From the short-term perspective, BTC/USD is now trading above all SMAs (hourly chart) with 200-SMA at $6,560 producing the first line of support for the coin No.1. The recovery is in place as long as BTC stays above this level. Once it is broken, the downside may be extended towards $6,500 and ultimately to $6,480. On the upside, a sustainable movement above $6,900 will put $7,000 back in focus.
BTC/USD, the hourly chart
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