Bitcoin Near Key Fib Extension Resistance, Can Bulls Spark A New Rally?
After forming a support base near the $5,800 level, bitcoin started a fresh increase against the US Dollar. BTC price remained well bid and it recently climbed above the $6,000 resistance area.
The upward move was convincing as yesterday’s major contracting triangle was breached with resistance near $6,000 on the hourly chart of the BTC/USD pair. The pair even climbed above the $6,400 resistance and the 100 hourly simple moving average.
There was a clear break above the 76.4% Fib retracement level of the recent decline from the $6,471 high to $5,694 low. It opened the doors for more upsides the $6,500 resistance and the $6,471 swing high.
Bitcoin tested the 1.236 Fib extension level of the recent decline from the $6,471 high to $5,694 low. It seems like the bears are defending the key Fib extension resistance near $6,650.
If there is an upside break above the $6,650 resistance, the price could continue to rise towards the $6,952 and $7,000 resistance levels. Any further gains is likely to set the pace for a sharp rise towards $7,500.
If bitcoin fails to clear the $6,650 resistance level, it could start a fresh decline. An initial support is near the $6,450 level. The first major support is near the $6,200 level and the 100 hourly simple moving average.
If there is a downside break below the 100 hourly SMA, there is a risk of a bearish extension towards the $6,085 level. Any further losses may perhaps lead the price towards the $6,000 and $5,800 support levels in the near term.