Bitcoin Price Analysis: BTC/USD struggles to hold above $7,000
- BTC/USD trades between key Fibonacci retracement levels on Saturday.
- Bitcoin remains on track to close third straight week with gains.
After advancing to its highest level since the March-13 crash at $7,250 on Thursday, Bitcoin (BTC/USD) struggled to preserve its bullish momentum and posted small losses on Friday. Although the pair is rising modestly on Saturday, the lack of volume suggests that it's likely to fluctuate in a tight range. As of writing, the pair was up 1.5% on the day at $6,840.
Technical outlook
Thursday's rally lifted the price to the Fibonacci 61.8% retracement of the sharp drop witnessed during mid-March at $7,250. However, the daily candlestick, which has a long wick and a small body, shows that the selling pressure remains strong around that area. With a daily close above $7,250, the pair could target $7,650 (50-day SMA) ahead of $8,170 (100-day SMA/200-day SMA).
On the other hand, a strong near-term support seems to have formed at $6,600, the Fibonacci 50% retracement level. Below that level, $6,250 (20-day SMA) could be seen as an interim support ahead of $6,000 (Fibonacci 38.2% retracement/psychological level).
BTC/USD daily chart
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
