- Bitcoin increased by 3% today as the cryptocurrency climbs back above $7,000 to reach $7,100.
- The cryptocurrency managed to rebound at the support provided by a rising trend line.
Bitcoin increased by a total of 3% today which allowed the coin to rise and break back above the $7,000 level. It was trading lower during the start of the week as it dropped back into the support around $6,800. Luckily, it managed to find additional support at a rising trend line which prevented the coin from falling and dropping lower.
Bitcoin now must break above $7,200 and $7,400 if we would like to see the cryptocurrency headed toward the $8,000 level.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Taking a look at the daily chart above, we can clearly see Bitcoin rolling over from the $7,200 region over the weekend. It fell into the support at $6,800 which is a level that provided strong resistance (now turned support) for the market during March 2020.
This support was further bolstered by the 5-week-old rising support trend line.
These two levels of support allowed Bitcoin to bounce back higher to reach the $7,175 resistance (bearish .618 Fib Retracement).
Short term prediction: Neutral
Bitcoin still remains neutral until it can break above $7,400, however, it is no longer in danger of turning bearish after bouncing from the trend line.
Above $7,175, resistance is located at $7,200 and $7,400. Above this, resistance lies at $7,500, $7,676 (1.618 Fib Extension), and $8,000 (bearish .786 Fib Retracement).
On the other side, the first level of support lies at $7,000. Beneath this, support lies at $6,800, $6,6612 (.236 Fib Retracement), and $6,200.
Support: $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: $7,000, $7,174, $7,400, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.