Bitcoin price rallied more than 5% and settled above the $7,050 resistance area. BTC/USD is currently correcting lower, but it might find a strong support near $6,940.
Yesterday, the bitcoin price started a strong increase above the $6,940 and $6,980 resistance levels. BTC/USD gained more than 5% and it settled above the $7,000 resistance.
Looking at the 1-hour chart, the price even surpassed the $7,120 resistance and the 25 simple moving average (1-hour, orange). Finally, it traded to a new weekly high at $7,201 and it is currently correcting lower.
The market data is provided by TradingView, Bitfinex.
It broke the $7,120 support and currently testing the 23.6% Fib retracement level of the latest rally from the $6,500 swing low to the $7,201 weekly high.
More importantly, the bitcoin price seems to be following a declining channel with support near $7,040 on the same chart. The channel support is also close to the 25 simple moving average (1-hour, orange).
If there is a break below the channel support, the price might test crucial support near the $6,940 area (the recent breakout zone). Any further losses may perhaps lead the price towards the $6,850 level.
The 50% Fib retracement level of the latest rally from the $6,500 swing low to the $7,201 weekly high is likely to act as major support near the $6,850 level.
On the upside, an initial resistance is near the $7,120 level. The main resistance for Bitcoin is near the $7,200 area, above which the bulls are likely to aim a larger rally towards $7,450. Conversely, dips towards the $6,940 and $6,850 zones are likely to remain well bid in the near term.