Bitcoin managed to break above the upper boundary of the ascending triangle that we have been following but only ever so slightly. Moreover, the cryptocurrency failed to close anywhere near the crucial $7,000 level as it rolled over and dropped back into the triangle today.
This slight breakout above the triangle could easily be a false breakout signal as the volume is very low which resulted in Bitcoin dropping back into the consolidation today as it falls back beneath $6,800.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Analyzing the daily chart above, we can clearly see the clean break above the triangle as Bitcoin managed to close above $6,800 yesterday. However, it still failed to close above the $7,000 level which could actually be the real boundary of the triangle itself.
The cryptocurrency has since rolled over today and dropped back into the triangle as we wait for today’s closing candle to provide further suggestions about where we may be headed next.
Short term prediction: NEUTRAL
Bitcoin still remains neutral whilst it trades within the confines of the triangle.
The first level of support beneath $6,700 is located at $6,500 which is provided by the short term .236 Fib Retracement level. Beneath this, support lies at the rising trend line and $6,100 (.382 Fib Retracement). This is followed by support at $6,000 and $5,786.
Toward the upside, resistance lies at $6,800 and $7,000. Above this, resistance lies at $7,174 (bearish .618 Fib Retracement), $7,270 (1.414 Fib Extension), $7,500, and $7,676 (1.618 Fib Extension).
Key Levels
Support: $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: $6,800, $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.
