Bitcoin price started a strong upward move after testing the $6,180 area. BTC/USD rallied towards $6,750 and is currently consolidating gains above $6,520.
Recently, the bitcoin price formed a key bottom near the $6,180 area and started a solid upward move. BTC/USD broke the $6,290 resistance area to move back into a positive zone.
Looking at the 1-hour chart, the price surpassed the $6,400 barrier and a major bearish trend line. It opened the doors for more gains above the $6,520 resistance and the 25 simple moving average (1-hour, orange).
The market data is provided by TradingView, Bitfinex.
Besides, the bitcoin price rallied above the 76.4% Fib retracement level of the key drop from the $6,636 high to the $6,181 low. More importantly, it surpassed the $6,636 high and traded to a new weekly high.
The price tested the 1.236 Fib extension level of the key drop from the $6,636 high to the $6,181 low, near $6,740.
It is currently correcting gains and trading below the $6,650 level. On the upside, the first key resistance is near the $6,740 level. A clear break above the $6,740 resistance could open the doors for a push towards the $7,000 and $7,150 levels.
In the short-term, there may be range moves above the $6,520 support level. If the price fails to stay above the $6,520 support level, it could correct lower towards the $6,400 pivot area.
The main uptrend support is now forming near the $6,400 level and the 25 simple moving average (1-hour, orange), below which Bitcoin is likely to move into a bearish zone. The overall price action is positive and bitcoin is likely to continue higher towards $7,000 as long as it is above $6,520 and $6,400.