Do or Die For Bitcoin Bulls: Here’s What Could Trigger A Strong Rally

Bitcoin is slowly rising and trading above the $ 6,750 level against the US Dollar. BTC price must claim the $ 7,000 resistance to start a strong rally in the near term.

  • Bitcoin is trading in a crucial range below the $ 7,000 resistance area against the US Dollar.
  • Yesterday’s discussed double top pattern is still active with resistance near $ 7,000 and support at $ 6,400.
  • There was a break above a short term contracting triangle with resistance near $ 6,680 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair soon start a strong rally above $ 7,000 or it might dive towards the $ 6,000 level.

Bitcoin Approaching Next Key Break

After forming a support base near $ 6,500, bitcoin started a steady increase against the US Dollar. BTC price remained well bid and climbed above the $ 6,650 resistance area plus the 100 hourly simple moving average.

The bulls remained in action and protected a strong bearish reaction below the $ 6,500 support area. Recently, there was a break above a short term contracting triangle with resistance near $ 6,680 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin Price

It opened the doors for more upsides above the 50% Fib retracement level of the downward move from the $ 6,981 high to $ 6,459 low. Bitcoin price even climbed above the $ 6,800 resistance area.

The price is currently struggling near the $ 6,850 level. It seems like the 76.4% Fib retracement level of the downward move from the $ 6,981 high to $ 6,459 low is acting as a major hurdle for the bulls.

More importantly, yesterday’s discussed double top pattern is still active with resistance near $ 7,000 and support at $ 6,400. If there is a clear break above the $ 6,850 and $ 7,000 resistance levels, the price could start a strong rally. The next major resistance is near the $ 7,500 and $ 7,650 levels.

Bearish Scenario

If bitcoin fails to continue above the $ 6,850 and $ 7,000 resistance levels, it could start a fresh decline. The main support on the downside is near the $ 6,500 and $ 6,400 levels.

A successful break and follow through below the $ 6,400 support might validate the double top pattern and the price is likely to slide towards the $ 6,000 support.

Technical indicators:

Hourly MACD – The MACD is currently losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 55 and 50 levels.

Major Support Levels – $ 6,650 followed by $ 6,500.

Major Resistance Levels – $ 6,850, $ 7,000 and $ 7,200.

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Bitcoin – NewsBTC

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