Bitcoin price jumped above key barriers against the US Dollar. BTC/USD may continue to move higher towards the $6,800 level in the near term.
Bitcoin Price AnalysisYesterday, bitcoin price started a downside correction after trading above the $6,450 level against the US Dollar. The BTC/USD pair corrected below the $6,350 level and tested an important support at $6,250. Moreover, there was a test of the 38.2% Fib retracement level of the last leg from the $5,780 low to $6,530 high. The price completed a correction pattern and started a fresh rally above the $6,400 level.
The upside move was strong as the price broke the $6,400 and $6,500 resistance levels. Additionally, yesterday’s discussed bullish flag pattern was breached with resistance at $6,380 on the hourly chart of the BTC/USD pair. The pair even broke the $6,600 level and traded as high as $6,680. At the moment, it is consolidating gains above the $6,500 level. An initial support is around the 23.6% Fib retracement level of the last wave from the $6,238 low to $6,680 high. However, the most important support on the downside is at $6,500, which was a resistance earlier.
Looking at the chart, the price is placed nicely in a bullish trend above $6,500. Should there be more gains, the price may perhaps climb above the $6,800 level. The next major hurdle for buyers is near the $7,000 level, which is also a pivot level.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in a bearish zone with consolidation signs.
Hourly RSI (Relative Strength Index) – The RSI is correcting from the overbought levels.
Major Support Level – $6,500
Major Resistance Level – $6,800
