Bitcoin price is trading in a positive zone above the $6,550 and $6,600 support levels. BTC/USD is likely to continue higher in the near-term towards the $7,000 and $7,200 levels.
In the past few sessions, the bitcoin price remained in a positive zone above the $6,550 pivot level. BTC/USD even climbed above the $6,750 resistance area to move further into a positive zone.
Looking at the 1-hour chart, the price traded as high as $6,840 and it settled nicely above the 25 simple moving average (1-hour, orange). It seems like the price is now consolidating gains below $6,800.
The market data is provided by TradingView, Bitfinex.
Initial support is near the $6,585 level. It is close to the 23.6% Fib retracement level of the upward move from the $5,748 low to the $6,840 high. More importantly, the bitcoin price is currently trading inside a key declining channel or a bullish flag with resistance near $6,780 on the same chart.
If the price breaks the channel support, it could start a major downside correction below $6,750. The next support is near the $6,400 area.
The main support below $6,400 is near the $6,295 level. It is close to the 50% Fib retracement level of the upward move from the $5,748 low to the $6,840 high.
On the other hand, Bitcoin is likely to surge above the $6,785 and $6,840 resistance levels. In the stated case, the price could climb steadily towards the $7,000 and $7,200 barriers in the coming sessions.
Any further gains could lead the price towards the $7,500 area. An intermediate resistance is seen near the $7,420 level.