After a turbulent weekend, in which Bitcoin rolled over from $6,800 and dropped as low as $5,850, the cryptocurrency has rebounded by a total above 8% as Bitcoin climbs back above $6,000. The coin climbed as high as $6,450 but has since pulled back slightly as it trades at $6,370.
Bitcoin was trading within an ascending price channel for the past 2-weeks but broke beneath this channel yesterday. It is now seeing resistance at the previous lower boundary of this price channel as the buyers try to push higher.
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see that Bitcoin was struggling to break above the resistance at $6,800 this weekend which caused it to roll over and drop. It had found support at the lower boundary of a rising price channel but eventually broke beneath this in yesterday’s trading session.
Bitcoin went on to drop as low as $5,850 before rebounding higher today to reach the current trading price of $6,377.
Short term prediction: NEUTRAL/BEARISH
The break beneath the rising price channel has put Bitcoin in danger of turning bearish. However, the subsequent rebound has allowed it to regain some hope moving forward as it still remains neutral.
If Bitcoin can break back above the rising price channel, the first level of resistance lies at $6,542. Above this, resistance lies at $6,800, $7,000, and $7,174.
Toward the downside, support lies at $6,100, $6,000, $5,850, $5,786, and $5,600.
Key Levels
Support: $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: $6,542, $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.
