Bitcoin [BTC/USD] Technical Analysis: On the cusp of $7000+ as bulls wait in the wings

The price of Bitcoin [BTC] is holding at $6700 and is demonstrating strong overbought signals. However, market movement might convert the signal into a stronger uptrend.

30 minute:

The 20 EMA is at $6635, providing a support level for the bounce that occurred earlier today. Stochastic is flashing an overbought signal with at 86. If the spike into overbought territory is short-lived, it might translate into a strong uptrend depending on market conditions.

A continuation of the uptrend from yesterday was also observed as the ascending triangle broke out into a channel. The channel is between the $6700 and $6370 mark. This makes room for another breakout as seen yesterday.

1 hour:

The MA also provides a support for the price at $6500. If the trend is reversed, expect to see strong support at this level.

The MACD is diverging upwards, with a bullish crossover seen recently. The histogram is also flashing green.

4 hour:

The 4-hour chart sees the EMA provide the floor for the bounce yet again at $6500. A strong uptrend is also apparent, from the $6430 to the $6700 marks. The trend will reverse if the price falls below $6410.

The candles are walking the Bollinger Bands, which is usually seen as a signal for the asset being overbought. However, considering the sharp uptrend, the momentum may signify a stronger uptrend to come.

1 day:

The 20 DEMA is still providing support at $6500, thus signifying a very strong floor for the uptrend. Even as the price is prone to a sharper fall if it breaks the $6500 barrier, the recent uptrend from $6490 to $6710 provides a clearer outlook for the future.

The RSI is resting at the center at 54. A bullish divergence was observed earlier in the week.

Conclusion:

The price is currently describing a very sharp uptrend. If overselling does not occur, the price might translate into a much more steeper uptrend that will see it testing the $7300 and $7600 levels. It is unlikely the price will fall below $6500 considering the strength of the uptrend. However, that floor is a crucial one, both psychologically and technically.

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