Bitcoin price analysis: BTC/USD upside capped below $6,400, while still prime for losses

There was a recovery staged at the beginning of July which spread a ray for hope among investors following the overarching declines in June. Bitcoin dipped into the pits below $6,000 but the trip downstream was short-lived when the Bulls took control. The bullish trend, on the other hand, lost momentum below $6,800 while the trading this week has seen a reversal that has butchered the support areas at $6,600, and $6,400.

Although the declines seem to have been stopped above the 50% Fib retracement level with the last swing high of $6,780.9 and a swing low of $5,775.4, BTC/USD is forming another rising wedge pattern that is likely to culminate in more declines in the medium-term. At the moment, the immediate resistance is at $6,400 (68.2% Fibo).

Further up, t$6,500 will offer more resistance to the critical resistance at $6,600. In retrospect, $7,000 is out of reach for now, but trading above $6,700 is good enough for the Bulls in the short-term.

Bitcoin dominance is the market continues to rise every passing week. It is now 43.4% while the trading volume has gone up 8.2% to $4 billion which could be as a result of the current selloff.

BTC/USD 1-hour chart