Bitcoin Price Technical Analysis – BTC/USD Wants a Piece of $7000?

Bitcoin price extended gains and traded above $6900 against the US Dollar. BTC/USD now eyes a test of the all-important $7000 handle.

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Key Points

Bitcoin price continued to move higher and traded above the $6500 level against the US Dollar.
Yesterday’s highlighted ascending channel with resistance at $6522 was broken on the hourly chart of the BTC/USD pair (data feed from SimpleFX).
A new all-time high was formed at $6909 from where the pair started a correction.
Bitcoin price extended gains and traded above $6900 against the US Dollar. BTC/USD now eyes a test of the all-important $7000 handle.

Bitcoin Price Bullish Trend

Yesterday, we saw how bitcoin price was preparing for more gains above $6400 against the US Dollar. There was a solid upside move and the price was able to break the $6500 resistance to trade above $6900. A new all-time high was formed at $6909 from where a short-term correction was initiated. The best part was the fact that there was a break above yesterday’s highlighted ascending channel with resistance at $6522 on the hourly chart of the BTC/USD pair.

At present, the pair is trading near the 23.6% Fib retracement level of the last leg up from the $6282 low to $6909 high. On the downside, there is a new connecting bullish trend line forming on the same chart of BTC with current support at $6680. The 38.2% Fib retracement level of the last leg up from the $6282 low to $6909 high is also positioned near $6669. Therefore, the $6680-70 levels are decent supports in the short term.

The most important support is near $6600. It is near the 50% Fib retracement level of the last leg up from the $6282 low to $6909 high. On the upside, the pair might attempt a break above $6900 for a push towards $7000 in the near term once the current correction is complete.

Looking at the technical indicators:

Hourly MACD – The MACD is strongly placed in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is well into the overbought levels, pointing a short-term correction.

Major Support Level – $6600

Major Resistance Level – $7000