Bitcoin rose more than 10% and broke the main $ 6,400 resistance. The price of BTC is now trading near the $ 6,650 resistance and could rise to $ 7,000.
After forming a support base near $ 5,800, bitcoin started a new bullish move above the $ 6,000 resistance area.
The rise was convincing as the main contraction triangle broke with resistance near $ 6,000 on the hourly chart for the BTC / USD pair. The pair even surpassed the $ 6,400 resistance and the 100-hour simple moving average.
There was a clear break above the 76.4% Fibonacci retracement level, opening the door to further gains.
Bitcoin tested the Fibonacci extension level 1,236 and it appears that the bears are defending the main resistance near $ 6,650.
If there is a break above the $ 6,650 resistance, the price could continue to rise to the levels of $ 6,952 and $ 7,000. Any additional gains are likely to set the pace for a sharp increase to $ 7,500.
If bitcoin fails to clear the $ 6,650 resistance, it could start a further decline. Initial support is close to $ 6,450. The first major support is close to the $ 6,200 level and the simple 100-hour moving average.
If there is a drop below the 100-hour average, there is a risk of a low extension to $ 6,085. Any further loss may bring the price to support levels of $ 6,000 and $ 5,800 in the short term.
- The analysis was translated from the NewsBTC website and is not an indication of buying or selling.
Register now! Voted the best broker in Brazil. Security, Liquidity and Agility. Don't waste any more time, complete your registration in less than 5 minutes! Access: bitcointrade.com.br