Bitcoin price analysis: BTC/USD reclaims $7,000, but can it hold? Goldman Sachs explores crypto-custody services

Since Bitcoin lost its cool above $8,000, the trend has been downstream for most of the trading since last week. The buyers are currently battling to escape the looming selling pressure, however, their efforts are met with declines that have had Bitcoin trade lows slightly below $6,850 on Tuesday 7.

All the immediate support levels in yesterday’s analyses were broken towards the close of the session. The first dip below $6,900 found a support marginally above $6,880, although the rebound lost momentum short of $6,990. There were fresh declines that pushed the price below the 23.6% Fib retracement level with the last drop from $7,163.88 and a low of $6,841.54 at $6,918. The drop continued below $6,900 and the weak support at $6,875 could not hold the price either and BTC/USD changed hands as low as $6,841.54.

The bulls entered at this position and the price bounced back above the $6,900 and the 23.6% Fib level. The upside was capped below $6,975 during the Asian trading hours (today) until a break above the 100 simple moving average on the 15-minutes chart occurred in the European trading hours. Bitcoin sprung up in an engulfing candle past the 61.8% Fib level at $7,040 and recorded intraday highs of $7,069.80.

Currently, the cryptocurrency is settling in a bullish flag pattern likely to find support at the 50% Fib level close to $7,000. However, technical indicators are retreating from the overbought territory, for instance, the stochastic is pointing south while at the 69% mark. The short-term 50 SMA is still below the 100 SMA to show that the sellers still have the power to push for lower corrections. A support above $7,000 is very vital to the buyers who have $7,100 in sight. The 61.8% Fib is a key breakout position for now.

In other news, Goldman Sachs, a guru in the financial sector is reported to be exploring custody services for digital assets. According to Bloomberg, Goldman Sachs intends to develop storage to bring down attacks that have become frequent online leading to loss of funds. However, the launch date for the services has not been released because the bank is still mulling out various options. It is expected a grand gesture like this one from Goldman Sachs will raise investor confidence in virtual currencies and even attract other big players to enter the crypto market. It is vital to note that the source of this information is anonymous, but the source added that Goldman Sachs could end up venturing into other crypto-related services like brokerage. Bloomberg cites a spokesperson from Goldman Sachs:

“In response to client interest in various digital products we are exploring how best to serve them in this space. At this point, we have not reached a conclusion on the scope of our digital asset offering.”

BTC/USD 15-minutes chart