Bitcoin Price Analysis: BTC Falls From $7,000 But Can The Next Bullish Push Take Us To $8,000?

Bitcoin

  • Bitcoin dropped slightly today but is finding some form of support at the $6,500 level.
  • The cryptocurrency increased as high as $7,000 over the past day but failed to close above it causing it to drop slightly. 

Bitcoin dropped from $7,000 over the past 24-hours of trading but is finding support at the $6,550 level. It had broken above this $6,550 resistance over the past 3-days of trading to rise into the $7,000 level before stalling.

These latest price increases show that Bitcoin is starting to recover from the previous price capitulation, especially after increasing by almost 14% over the last week of trading.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

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BTC/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can see that Bitcoin rebounded from support at $5,786 that was highlighted in my last analysis. After rebounding it went on to rise above the previous resistance at $6,174 to reach the resistance at $6,542 which is provided by a bearish .5 Fibonacci Retracement level.

It broke this resistance 3-days ago to rise as high as $7,000 but has since dropped and returned to this resistance which is now acting as support.

Short term prediction: NEUTRAL

If the buyers can rebound from the $6,542 support, the first level of resistance lies at $7,000. Above this, resistance is expected at $7,174 (bearish .618 Fib Retracement), $7,270 (1.414 Fib Extension), and $7,676 (1.618 Fib Extension).

This is then followed by resistance at $8,000 which is provided by the bearish .786 Fib Retracement. If Bitcoin can break here, the market would be on the verge of turning bullish in the short term.

Toward the downside, support lies at $6,542, $6,174, $6,000, $5,786, and $5,467.

Key Levels

Support: $6,542, $6,174, $6,000, $5,911, $5,786, $5,600, $5,500, $5,467 $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436..

Resistance: $7,000, $7,174, $7,200, $7,270, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.