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Bitcoin Price Analysis: BTC/USD approaches $7,000, bulls may be disappointed once again

  • Bitcoin has resumed the growth, but the critical resistance of $7,000 remains unbroken.
  • The vital short-term support is created by $6,800.

BTC/USD resumed the upside trend after a consolidation around $6,700 during the weekend. At the time of writing, BTC is changing hands at $6,930 and the upside momentum is gaining traction. A sustainable move above $7,000 is needed to improve the technical picture and bring the next resistance of $7,300 back into focus. Bitcoin has gained nearly 3% since the beginning of the day and stayed mostly unchanged on a day-to-day basis.

BTC/USD: Technical picture

On the intraday charts, BTC/USD has settled above a critical barrier created by a combination of SMA50 and SMA100 on the 1-hour chart at $6,800. This area now serves as strong support that is likely to stop the short-term downside correction. However, considering that the RSI has reversed to the downside from the overbought territory, the sell-off may continue towards the next barrier of $6,500 created by SMA200 1-hour. 

BTC/USD 1-hour chart

On the upside, a sustainable move above $7,000 is needed for the recovery will gain traction. The upside momentum may take the price towards $7,254 (Thursday's high) and $7,500. This resistance area is strengthened by SMA50 daily. The next resistance is created by  psychological $8,000 and SMA100 daily at $8,150

BTC/USD daily chart


 

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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