Bitcoin Price Analysis: Price Fails To Hold Gains After Breakout, Can Bitcoin Retake $7000 Resistance?

 

• The bullish trend remains valid but Bitcoin needs to close well above $7000 to start a fresh rally
• Bitcoin is forming a bullish setup in an hourly channel
• Bitcoin is holding weekly support at $5880

After making a false breakout yesterday, Bitcoin’s price dropped and continued to hold strongly around a controversial resistance of $6900; which held bullish actions for the past weeks. For this reason, Bitcoin is now priced at $6929 against the US Dollar. Although the price is still up by 4.39% to indicate that buyers are still in the market.

Key resistance levels: $7200, $7600, $8000
Key support levels: $6600, $6170, $5880

Bitcoin (BTC) Price Analysis: 4H Chart – Bullish

Yesterday, Bitcoin broke out from an ascending triangle after series of push from the $4000. But the triangle breakout became invalid after a quick rejection from $7200 (trapping some buyers) to $6900 at the moment. Notwithstanding, the setup is still looking bullish on the 4-hours chart.

If the buyers increase pressure one more time, Bitcoin is likely to test $7200 resistance (yesterday’s high). A push above this resistance should propel buying to $7600 and possibly $8000 in the coming days. An inverse move could send BTC to $6600 and $6170 support, slightly below the triangle. Below this support lies $5880, marked green on the chart.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

The hourly chart for Bitcoin shows that the price is respecting an ascending channel pattern. As can be seen, the recent channel breakout to $7200 turned out to be a fake-out. Bitcoin is now trading back inside the channel. As it appeared now, the price is likely to drop soon as Bitcoin struggles below $7000 resistance level.

There’s close support at $6800 in case Bitcoin shows weakness. The next support can be located at $6600, around the lower boundary of the channel. If this boundary fails to act as support, Bitcoin may break down to $6200 and $5880 support.

BITCOIN SELL ORDER

Sell: $6933
TP: $6612
SL: $7177