Bitcoin price is following a nice uptrend and it broke the $7,000 resistance area. BTC/USD is likely to continue higher towards $7,400 and $7,480 in the coming sessions.
Recently, the bitcoin price started a strong increase above the $6,800 barrier against the US Dollar. BTC to USD broke many key hurdles near $7,000 and $7,020 to enter a positive zone.
Looking at the 1-hour chart, the price even surpassed the $7,200 resistance area and settled well above the 25 simple moving average (1-hour, orange). It traded as high as $7,449 and recently started a downside correction.
The market data is provided by TradingView, Bitfinex.
The price corrected below the $7,350 level. Besides, there was a break below the 23.6% Fib retracement level of the recent upward move from the $7,063 low to the $7,449 high.
However, there is strong support forming near the $7,250 and $7,240 levels. It seems like the bitcoin price is likely to remain supported above $7,240 and a connecting bullish trend line on the same chart.
The 50% Fib retracement level of the recent upward move from the $7,063 low to $7,449 high is also near the $7,256 level to act as a strong support. The main support is near the $7,220-$7,240 area since it is close to the 25 simple moving average (1-hour, orange).
If the price fails to stay above $7,240 or and the 25 simple moving average (1-hour, orange), there is a risk of a larger correction towards the $7,060 zone.
Conversely, Bitcoin is likely to continue higher above the $7,350 level. The first resistance is near $7,440 and $7,480, above which the bulls are likely to target the $7,650 zone in the coming sessions.