Bitcoin Price Analysis: BTC/USD rallies to $6,800; why breakdown to $6,400 in the offing?

Bitcoin price rallied during the American session on Wednesday where the bullish leg extended above the resistance at $6,500. More buyers entered the market, pulling BTC/USD closer to the critical $6,800 level. The bullish action was more of a technical breakout; a short term falling wedge pattern kicked Bitcoin the 50 SMA, as well as the resistance at the 61.8% Fib level taken between the last drop from $6,768 to $5,855. This move encouraged the traders to capitalize on the buying entries elevating Bitcoin towards $7,000.

Meanwhile, Bitcoin is trading at $6,623 after the rejection from the weekly high at $6,768. The immediate support at $6,600 has been tested. However, buying activities continue to shield BTC/USD from a potential breakdown to $6,400.

From a technical perspective, Bitcoin is likely to take up a sideways trading action. The RSI, for example, is holding ground at 70, unbothered by the short term overbought conditions. In other words, buyers have more influence over the price compared to the sellers. Besides, the MACD clearly puts the bulls in the driver seat especially with vividly visible bullish divergence in the positive zone. For now, the best the bulls can do is to guard the support at $6,600 at all costs, this will ensure they avert the looming bearish calls explore the rabbit hole.

BTC/USD 1-hour chart