Bitcoin price is slowly correcting higher and trading above $6,820. BTC/USD could either rally above $6,980 or it might dive towards the $6,720 and $6,660 levels.
Recently, the bitcoin price started a recovery wave above the $6,660 resistance area. BTC/USD managed to recover above the $6,740 resistance to increase the chances of an upside break.
Looking at the 1-hour chart, the price even traded above the $6,820 resistance level and the 25 simple moving average (1-hour, orange). It’s now trading above the 50% Fib retracement level of the last major decline from the $7,192 swing high to $6,571 swing low.
The market data is provided by TradingView, Bitfinex.
At the outset, the price is facing hurdles near the $6,940 and $6,980 levels. The 61.8% Fib retracement level of the last major decline from the $7,192 swing high to the $6,571 swing low is also near the $6,955 level.
More importantly, the bitcoin price is still following yesterday’s key ascending channel with support near $6,840 on the same chart.
If there is a clear break above the $6,940 and $6,980 resistance levels might pump the price above the $7,000 and $7,050 levels. The next major resistance on the upside sits near $7,160, above which the bulls are likely to aim a break above $7,200.
Conversely, the bulls might fail to push the price above the $6,940 and $6,980 resistance levels. In the mentioned case, the bears could aim a downside break below the channel support and $6,800.
If the bears succeed, Bitcoin is likely to restart its decline and it might slide back towards the $6,620 and $6,570 levels in the near term. Any further losses could lead BTC towards $6,400.