The Near Term Aim Of The BTC is to Break Above The $7,000 Level
The BTC prices have experienced an upside correction during the past week after forming a decent support base over $4,000. The correction earmarked a price gain momentum above the $4,500 mark trading at above the $5,000 level of resistance.
The coin experienced a break above the initial $5,500 resistance, causing a surge above the $6,000 mark. The price surge however hit a snug at the $7,000 resistance level and the 4 hours 100 simple moving average.
A new weekly high near $6,979 was formed before a downward price correction began. The coin’s 23.6% Fib retracement level of the recent upswing from the $4,328 low to $6.979 high was in turn broken.
The downside however has bitcoin’s strong support near the $5,800 mark. It’s 50% Fib retracement level of the recent rally from the $4,328 low to $6.979 high also acts as another support base.
For the upside, major resistance at the $6,800 level and the 100 simple moving average (4-hours) can be observed. A key bearish trend line is being formed with resistance at the $6,680 mark on the price’s 4-hours chart. If the BTC successfully breaks above the trend line, 100 SMA and $6,800, the likelihood of a surge towards the $7,500 and $7,800 levels in the near term are very high.
The $5,800 price level forms the major current BTC support level, with the next major support at $5,200. A connecting bullish trend line can thus be observed on the same chart. If the BTC price drops below the $5,200 support, another price decline may be on the way. The price may get to the $4,500 and $4,200 support levels as a result of such a decline.
The BTC’s 4 hours MACD is anticipated to move back into the bullish zone. The coin’s current 4 hours RSI (Relative Strength Index) is above the 50 levels by quite a margin. This sets the major support level at $5,800, with the major resistance level set at $6,800.