Bitcoin is currently correcting higher and trading above $6,800 against the US Dollar.
The bulls are showing a lot of resilience above $6,600, but the price is still facing many hurdles.
This week’s key bearish trend line is active with resistance near $7,040 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must gain strength above $7,000 and $7,040 to continue higher in the near term.
Bitcoin Approaching Key Resistance
In the past three sessions, bitcoin bulls remained active above the $6,600 and $6,700 levels against the US Dollar. BTC price managed to settle above the $6,760 pivot zone and recently settled above the 100 hourly simple moving average.
There was a close above the 50% Fib retracement level of the main decline from the $7,218 swing high to $6,557 swing low. The price made an attempt to climb above the $6,950 and $7,000 resistance levels, but it failed.
It seems like the 61.8% Fib retracement level of the main decline from the $7,218 swing high to $6,557 swing low is acting as a strong resistance. More importantly, this week’s key bearish trend line is active with resistance near $7,040 on the hourly chart of the BTC/USD pair.
Bitcoin Price
Bitcoin is clearly facing a couple of key hurdles near $6,950 and $7,040. A successful break above the trend line resistance could lead the price towards the main $7,200 resistance area.
If the bulls are able to clear the $7,200 resistance area, there are high chances of a strong rise in the coming sessions. The next major resistances are near $7,500 and $7,660.
Downside Reaction
If bitcoin struggles to clear the $6,950 and $7,040 resistance levels, there might be a bearish reaction. On the downside, an initial support is near the $6,750-$6,760 zone.
If the bulls fail to protect the $6,750-$6,760 support zone, the bears are likely to take control. In the mentioned bearish case, the price is likely to slide back towards the $6,560 zone in the near term. Any further losses may perhaps call for a test of the $6,200 level.
Technical indicators:
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.
Major Support Levels – $6,760 followed by $6,560.
Major Resistance Levels – $6,950, $7,040 and $7,200.
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