Bitcoin price analysis: BTC/USD recovery limited below $6,900, the path of least resistance is to the downside

  • Both the 100 SMA and the descending trendline are limiting gains at $6,800.
  • BTC/USD to use the support at $6,700 in the short-term, but $6,600 will be instrumental in stopping further declines.

The recent downward movements have culminated in Bitcoin price trading within a ranging channel. The Bulls lack a fresh catalyst to shake off the bears and correct higher above $7,000. The recovery since the weekend declines has been locked below the resistance encountered at $6,900.

Attempts to break above the descending trendline were thwarted with high selling pressure on Tuesday where BTC/USD rejected a support area at $6,800. The buyers, however, stood their ground slightly above $6,700. Both the 100 SMA and the descending trendline are limiting gains at $6,800 although a bullish momentum is battling to break barriers towards $7,000.

The bear activity brought the price back to the drawing board in the session on Tuesday at $6,700. This has brought back the buyers who are pushing for retracements towards the upper supply zone above $6,800 but within the range. $6,900 is a breakout to the upside but a drop past $6,700 is a breakdown and could see BTC/USD test the demand zone close to the lows traded on Monday this week of $6,628.

The stochastic is still in the oversold region put heading upwards, besides the moving average gap sends signals for more buying entries, both indicators confirm the bullish trend in the near-term. As mentioned, $6,700 will continue to support the price until the close of the session. Failure to which, the next support target at $6,600 will be very instrumental in preventing declines towards April 2018 lows of $6,450.

BTC/USD 30 minutes chart

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