After a significant rally, bitcoin price started a downside correction below the $7,280 and $7,150 support levels. BTC to USD tested the $6,800 support area, bounced back, and it now looks set for more gains.

Key Takeaways: BTC/USD

  • Bitcoin price traded as low as $6,762 and recently bounced back above $7,200 against the US Dollar.
  • BTC/USD is trading well above the $7,000 support and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
  • Binance coin (BNB) is up 10% and it seems like Ethereum could climb towards $198.00.

Bitcoin Price Analysis

In the past seven days, we saw a strong rise in bitcoin price above many important hurdles such as $6,000, $6,200 and $6,400. BTC price even rallied above the $7,000 and $7,200 resistance levels.

Looking at the 2-hours chart, bitcoin even surged above the $7,500 level and traded to a new 9-month high at $7,587. Later, the price started a downside correction and traded below the $7,250 and $7,110 support levels.

Bitcoin Price Analysis BTC Chart

The price even broke the $7,000 support, but it stayed well above the 50 simple moving average (2-hours, purple). A swing low was formed near $6,762 and the price recently bounced back above $7,000. BTC is now trading well above the $7,000 support and it has already recovered above the 50% Fib retracement level of the slide from $7,587 to $6,762.

It is now trading near a crucial hurdle near $6,300 and the 61.8% Fib retracement level of the slide from $7,587 to $6,762. However, the current price action is positive and there are high chances of a sharp rally above the $7,300 resistance level.

The next key resistance is near $7,390, above which the price is likely to run towards the $7,500 level or the $7,587 swing high. In the mentioned scenario, bitcoin price could even trade to a new 2019 high above $7,600.

In the short term, there could be swing moves, but the price remains well supported near $7,000 and a bullish trend line on the same chart. A close below the trend line support will most likely start the second correction wave towards $6,850 or even to 50 simple moving average (2-hours, purple) at $6,700.

Written by Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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