Bitcoin price started trading in a range after a sharp rise towards $7,200. BTC/USD seems to be preparing for the next key break either above $7,160 or towards $6,850.
Recently, there was a decent rise in the bitcoin price above the $7,000 pivot zone. BTC/USD settled in a positive zone above $7,000 and even tested the $7,200 resistance.
Looking at the 1-hour chart, the price traded as high as $7,200 and it’s currently consolidating above the 25 simple moving average (1-hour, orange). It tested the 23.6% Fib retracement level of the recent surge from the $6,500 swing low to the $7,200 high.
The current price action is positive, but the price seems to be facing a strong hurdle near the $7,160 and $7,200 level. If the bulls succeed in gaining strength above the $7,200 resistance area, there are real chances of another surge.
The next key resistance is near the $7,320 level, above which the bulls are likely to aim for $7,500 in coming sessions.
On the downside, initial support is near the $7,080 level and the 25 simple moving average (1-hour, orange). Besides, the bitcoin price is following a key bullish trend line with support near $7,050 on the same chart.
If there is a downside break below the trend line, there is a risk of an extended bearish wave towards the $6,940 support area.
The main support is near the $6,850 level since it coincides with the 50% Fib retracement level of the recent surge from the $6,500 swing low to the $7,200 high. Overall, Bitcoin could either rally above $7,200 or test the $6,850 support zone.