- Bitcoin price is range bound below the upper limit resistance at $7,000 and the immediate support at $6,900.
- A break below yesterday’s support at $6,800 could see Bitcoin test $6,400.
Bitcoin closed the trading last week trading at roughly $6,700. Further upward retracement continued at the beginning of this week. BTC/USD recorded highs of $7,130 but retracted below $7,000 on Thursday testing the key support area at $6,800.
According to the Bollinger bands applied to the hourly chart, volatility levels increased as Bitcoin added over $200 to trade above $7,000. Buyers’ failure to find support resulted in another dip that has found a stable ground at the 61.8% Fib level taken between the highs of $7,140 and the lows of $6,502. The price is currently range bound below the upper limit resistance at $7,000 and the immediate support at $6,900.
The buyers must take the price above $7,000 in the near-term for a further retracement to $7,500. Otherwise, a break below yesterday’s support at $6,800 could see Bitcoin test $6,400 and eventually $6,000 (traders’ margin long position).
A broader look at the BTC/USD 1-hour chart shows that the bears are in control but the volatility is averaged. The stochastic is heading towards the oversold to show that the trend is in favor of the bears. The bullish trendline is positioned to hold the price in the event $6,900 support is broken.
BTC/USD hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.