BTC May Significantly Decline if it Fails to Break the $7000 Resistance
The BTC price traded over $6400 support area yesterday. Eventually, the price brook above the $6800 resistance and settled above 100 hourly simple moving average (SMA). However, the bulls are struggling near the $7000 resistance area to push the price higher.
With resistance near $7000, a double top pattern is likely forming on the Bitcoin price chart.
What the BTC Price Chart Reveals
A daily high formed near $6989, and currently, the price is correcting lower. There is a break below the 23,6% Fib level of the recent rally from the $5750 low to $6989 high. On the downside, strong support is available at $6500, with the next significant support near the $6400 level and the 100 hourly SMA.
The 50% Fib retracement level of the recent rally from the $5750 low to $6989 high is near the $6400, serving as a support. A successful break below the $6400 support and the hourly SMA could start a significant decline.
The next support is close to the 6200 level, and there is a crucial bullish trend line forming, with support near $6240 on the BTC/USD hourly-chart. A successful break below this trend line support will most likely confirm the highlighted double top pattern, and the price may drop towards the $6000 and $5800 support levels.
On the upside, if BTC remains over $6500 and $6400 levels, it may incline above the $7000 resistance area in the short term. A clear break above $7000 may negate the double top pattern, and the price could rally towards the $7500 level.