Bitcoin price is stuck in a range above the $6,766 weekly low. BTC/USD is likely to recover towards the main $7,000-$7,020 resistance area in the near-term before the next key move.
Recently, we saw a decline in the bitcoin price below the $7,020 and $7,000 support levels. BTC/USD traded as low as $6,766 and it’s currently consolidating losses.
Looking at the 1-hour chart, the price is currently trading in a range and moving above the $6,850 level. There was also a push above the $6,900 level and the 25 SMA (1-hour, orange).
The bulls were able to push the price above the 23.6% Fib retracement level of the downside move from the $7,236 high to the $6,766 low. However, resistance near the $6,940 level is currently acting as a hurdle.
Besides, the bitcoin price is currently following a short-term ascending channel with resistance near $6,940 on the same chart. If it breaks above the range resistance, the price could recover towards the $7,000 and $7,020 resistance levels.
The $7,000-$7,020 resistance area is crucial, above which Bitcoin is likely to start a fresh and convincing upward move. The next major resistance is near the $7,200 and $7,235 levels.
Conversely, the price might fail to recover above the $6,940 range or the $7,020 resistance area. In that case, the bitcoin price is likely to resume its decline below the $6,765 breakdown zone.
A clear break below the $6,765 zone could open the doors for a larger decline in the coming sessions. The next support is near the $6,540 level, followed by the $6,400 zone.