Bitcoin price analysis: BTC/USD takes flight towards $7,000 mark; a support above $6,900 is vital
|- Bitcoin price broke out of the contracting triangle pattern culminating in a spike above $6,900.
- Technical indicators are beginning to show signs of reversal.
- Bitcoin buyers must battle for a support above $6,900.
Bitcoin continues to prove to the investors that it does not need an ETF in order to retrace higher and recover its value. Bitcoin has lost more than half of its value since the rally late last year that saw it trade close to $20,000. Industry experts like Tom Lee of Fundstrat still believe that Bitcoin will exchange at $20,000 before the end of 2018. He says that hedge funds are and will continue to play a vital role in the recovery of Bitcoin. An ETF will be a huge boost as well but that is a discussion for another day.
In the meantime, Bitcoin broke out of the contracting triangle it had formed yesterday as covered by FXStreet. This move triggered another sharp spike above the critical resistance at $6,800. Moreover, the uptrend broke above the medium-term resistance at $6,900. The digital asset has traded highs of $6,908.58 on the day. There was a slight retracement below $6,800 but the bulls entered once again bringing the price above $6,900.
At present, Bitcoin is seeking support above $6,900 (resistance turned support). Technical indicators are beginning to send bearish signals at the moment. The MACD is above the 40 percent mark and is beginning to change direction downwards. The stochastic is in the oversold but is also changing direction south. Therefore, the bears are seeking entry above $6,900 and the bulls must put their best foot forward and stop declines below the short-term support. Both the 50SMA and the 100SMA on the hourly chart will stop declines at $6,738.86 and $6,695.49 respectively.
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