Bitcoin Price Analysis: 7K seems to be a massive barrier
- Bitcoin is has tested the 7K level 4 times and managed to break it one but cannot sustain the move.
- The 6600.00 support zone is now even more significant as a break could give us some clues.
BTC/USD 1-hour chart
Bitcoin managed to get as high as 7,254.74 but sold off as the bulls could not manage to keep the buying momentum going. The bulls then tried to take another run at the highs and the second wave only managed to get as high as 7048.98 and briefly hold above the 7K zone.
On the downside now, the price managed to find some support at the 55 exponential moving average (EMA). The spike through the EMA took the price to the 6600.00 level and now this is a key zone. If the price breaks the support then a new lower high and lower low would be created possibly starting the change in trend.
Underneath that, the blue trendline could also offer support and it is quite close to the 200 1-hour simple moving average (SMA). Lastly, the RSI has moved below the 50 mid-line indicating the bearishness could be more permanent.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
