Bitcoin still bullish despite price withdrawal: Hunt for $7K?
Bitcoin [BTC] price is withdrawing after it raised to 10% in the past 11 days. According to the technical studies, the short-term outlook of crypto enthusiasts remains bullish.
Today the prominent cryptocurrency fell back to $6,414. On a 24- hour basis, the digital currency fell down to 2.2 % when compared to the previous day’s trading value of $6,681 on Bitfinex – the highest value since June 22.
However, the bullish state is clearly diminishing in the last 24 hours. But the probability of Bitcoin [BTC] reaching $7,000 remains high.
BTC broke the double bottom neckline resistance of $6,341 on Saturday, that confirms a short-term bullish reversal and raising to $6,927. Also, it built a nice base around $6,341 before presenting a high volume raise to $6,681 on Sunday.
The break below $6,341 would weaken the bull case. As of now, bitcoin [BTC] is trading above the neckline support and looking northwards as indicated by the double bottom breakout and bull flag breakout.
Yesterday, bitcoin price traded at a value of $6,700 level against the US Dollar. The BTC/USD pair traded as high as $6,680 before sellers opinionated. As a result, a downside correction initiated and the price dropped to a value below the $6,600 level. While declining, the price broke the $6,550 and $6,500 support levels. Moreover, it cleared the 50% Fib retracement level of the last wave from the $6,260 swing low to $6,680 high.
However, drop in the value was protected by the $6,400 support, which was a resistance earlier. In addition to this, the 100 hourly simple moving also acted as a support. At the moment, the price is consolidating losses above the $6,400 support. A bearish break below the $6,400 support and the 100 hourly SMA could be a bearish sign in the short term.
Based on the pattern of the chart, bitcoin is seen rising to $7,000 in the short-term and could rise further if its move toward the psychological hurdle is backed by a strong rise in the daily trading volume.
Image via Shutterstock
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