Bitcoin price analysis: BTC/USD reversal is imminent

Bitcoin traded higher highs and higher lows recording a week’s high at $7,130.97 yesterday. The bullish trend was initiated at the beginning of the week and Bitcoin made an incredible jump above the resistance at $7,000. The largest digital asset by market capitalization was overwhelmed by the rising selling entries around $7,130 resulting in lower corrections. BTC/USD broke below the bullish trendline with a support highlighted at $7,076.44. The crypto then settled in a range with resistance at $7,069.54 and support at the 61.8% Fib with the last high leg of $7.130.97 and a low of $6,712.65.

Bitcoin is currently trimming gains below $7,000 but supported strongly at $6,920, which is also the 50% Fibonacci level. There has not been a close move towards $6,900. A stronger support is observed at $6,750 (former resistance). The hourly 100SMA currently at $6,727.31 will work as another support line.

If the price slides below $6,900, Bitcoin is likely to test the support at $6,750. The trend at the time of press is highly bearish and a reversal is imminent. The path of least resistance is to the south, similarly the stochastic is moving into the oversold region. Bitcoin has to keep the support above $6,900 in order to stay away from extended declines. The resistance at $7,000 will be tough on the buyers. The second resistance is highlighted at the 50 SMA currently at $7,032.27.

BTC/USD 1-hour chart