Bitcoin Price (BTC) Rally Could Gather Pace Above $7,300
Bitcoin price is trading in a positive zone above the $7,015 support area. BTC to USD is likely to accelerate higher once it clears the $7,220 and $7,300 resistance levels.
Key Takeaways: BTC/USD
- Bitcoin price is back in an uptrend above the $7,000 resistance area against the US Dollar.
- BTC/USD surpassed a strong resistance near $7,020 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum is back above $125 and it could continue higher in the near term.
Bitcoin Price Analysis
After a strong decline, bitcoin price found support near the $6,420 level. BTC to USD traded as low as $6,423 before the bulls took over and there was a sharp upward move.
Looking at the 2-hours chart, bitcoin started a major upward move above $6,800 and the 50 simple moving average (2-hours, purple). It opened the doors for more gains above the $7,000 hurdle.
Moreover, the price surpassed a strong resistance near $7,020 and a bearish trend line on the 2-hours chart. The recent increase was strong and gathered pace above the $7,200 level.
However, the upward move faced a major hurdle near the $7,450 level. A high was formed near $7,449 and the price recently started a downside correction. It broke the 23.6% Fib retracement level of the recent wave from $6,423 to $7,449.
However, the previous bearish trend line and the $7,015 level is acting as a key support area. Bitcoin price is now showing positive signs above the $7,000 level and the 50 simple moving average (2-hours, purple).
On the upside, the price is likely to face hurdles near $7,220 and $7,290. A successful close above the $7,300 level could set the pace for another increase in the coming sessions. The next set of resistances is near the $7,450 and $7,500 levels.
On the other hand, bitcoin price could fail to climb above $7,220 or $7,300. In the mentioned case, there are chances of an extended correction below $7,015. The next support is near the $6,940 level or the 50% Fib retracement level of the recent wave from $6,423 to $7,449.