Bitcoin is currently correcting higher from the $4,320 support area against the US Dollar. BTC could rally further if the bulls are able to push the price above $6,800 and the 100 SMA (H4).
Bitcoin price seems to be facing a strong resistance zone near the $6,800 and $7,000 levels.
The 100 simple moving average (4-hours) holds the key for the next move.
There is a key bearish trend line forming with resistance near $6,680 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair could either rally above $6,800 or it might decline back towards the $5,200 level.
Bitcoin is Approaching Major Hurdle
This past week, bitcoin started an upside correction after it forming a decent support base above $4,000 against the US Dollar. BTC price gained momentum above the $4,500 level and traded above the $5,000 resistance.
The bulls were able to push the price above the $5,500 resistance. As a result, there was a sharp upward move above the $6,000 level. However, the rally faced a major hurdle near the $7,000 level and the 100 simple moving average (4-hours).
A swing high was formed near $6,979 and the price is currently correcting lower. It broke the 23.6% Fib retracement level of the recovery wave from the $4,328 low to $6.979 high.
On the downside, bitcoin is finding strong bids near the $5,800 level. The 50% Fib retracement level of the recovery wave from the $4,328 low to $6.979 high is also acting as a support.
On the upside, the bulls are facing a major barrier near the $6,800 level and the 100 simple moving average (4-hours). There is also a key bearish trend line forming with resistance near $6,680 on the 4-hours chart of the BTC/USD pair.
If the pair gains bullish momentum above the trend line, 100 SMA, and $6,800, there are high chances of a solid surge towards the $7,500 and $7,800 levels in the near term.
The main support for bitcoin is forming near the $5,800 level. The next key support is near the $5,200 level and a connecting bullish trend line on the same chart.
A successful break below the $5,200 support could restart the last decline. In the stated case, the price is likely to slide back towards the $4,500 and $4,200 support levels.
4 hours MACD – The MACD for BTC/USD is about to move back into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
Major Support Level – $5,800
Major Resistance Level – $6,800