Bitcoin price stayed above a crucial support at $6,780-6,800 and recovered against the US Dollar. BTC/USD must break the $7,000-7,040 resistance to resume uptrend.
- Bitcoin declined recently and tested an important support near $6,780-6,800.
- BTC/USD is currently struggling to break a connecting bearish trend line with resistance at $7,000 on the 2-hours chart.
- BTC price must break the $7,000 resistance to climb higher once gain in the near term.
Bitcoin price analysis
Recently, bitcoin price formed a short-term top at $7,140 and started a downside correction against the US Dollar. It seems like there was a minor double top pattern formed at $7,140 in BTC/USD, resulting in a bearish push.
The 2-hours chart of BTC price indicates that the price declined below the $7,040 support and the $7,000 handle. However, losses were defended near the $6,780-6,800 zone, which was a crucial resistance earlier.
The price found a strong support near $6,780-6,800 and recovered higher. It traded above the $7,000 level and the 50% Fibonacci retracement level of the last decline from the $7,137 high to $6,784 low.
However, bitcoin buyers were not able to break the $7,040 resistance and the 61.8% Fibonacci retracement level of the last decline from the $7,137 high to $6,784 low. More importantly, there is a connecting bearish trend line in place with resistance at $7,000 on the same chart.
At the outset, the price is clearly struggling to surpass the trend line and $7,000. A proper 2-hour close above the trend line, $7,000, and $7,040 is needed for buyers to take control. Above $7,040, the price is likely to accelerate higher towards the $7,140 high.
If buyers succeed in clearing the $7,140 high, there could be a sharp rise towards the $7,300 level. On the other hand, the $6,780-6,800 support holds a lot of significance. A clear downside break below $6,780 could increase bearish pressures on BTC price.
To sum up, bitcoin price is reaching the next break either above $7,040 or below $6,780 in the near term. Technically, the 2-hour BTC/USD RSI is signaling short-term weakness below 50.
Also, read: Bitcoin Stumbles at $7k But this Study Declares BTC Price Gonna Hit $32,000
Written by Latika Mehrotra @ https://coingape.com/bitcoin-price-analysis-btc-usd-likely-basing-for-next-move/ August 31, 2018 Latika Mehrotra