Bitcoin (BTC) Price Analysis: 6% Surge Brings BTC Back to $7K, $7.4K Incoming?

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  • Bitcoin saw a 6% price increase over the past 24 hours of trading, bringing the cryptocurrency back above the $7,000 boundary.
  • The cryptocurrency had dropped as low as $6,500 today but managed to turn things around to break above $7,000.

Bitcoin’s 6% price increase has now brought the cryptocurrency up above the resistance at $6,800 and beyond $7,000. The cryptocurrency had been trending lower over the past few days and even broke beneath a rising support trend line to reach as low as $6,500.

Nevertheless, Bitcoin managed to reverse the downtrend as it surged today to climb back above $7,000. This is not surprising, especially with the Bitcoin block halving just 25 days away now we can expect more and more people to start buying up any dips that they see as they expect price action to continue to rise in the lead up to the event.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

BTC/USD. Source: TradingView

Market Overview

Analyzing the daily chart above, we can clearly see Bitcoin dropping beneath the previous rising trend line which should have marked the beginning of a downtrend, however, the bulls managed to find some steam at $6,500 which allowed them to buck the downtrend and reverse.

The thrust witnessed today allowed Bitcoin to rise back above the $7,000 level with an increased level of volume.

Short term prediction: Neutral/Bullish

Bitcoin is neutral at this moment in time and must break above the resistance at $7,400 to turn bullish.

If the buyers continue higher, the first level of resistance lies at $7,174 (bearish .618 Fib Retracement). Above this, resistance is expected at $7,400, $7,500, $7,676, and $8,000.

On the other side, support lies at $6,800, $6,600, $6,500, and $6,319.

Key Levels

Support:$7,000 $6,800, $6,500, $6,100, $6,000, $5,911, $5,786, $5,636, $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: $7,174, $7,400, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.