Bitcoin Price Analysis: BTC/USD Signaling Bullish Bias Toward $7,000

Bitcoin price surged above the $6,700 resistance against the US Dollar. BTC/USD could continue to move higher towards the $6,900 and $7,000 resistances.

Important points

• Bitcoin gained bullish momentum recently after it broke the $6,450 and $6,620 resistances.
• BTC/USD broke a crucial contracting triangle with resistance at $6,480 on the 2-hours chart.
• BTC price is currently trading well above $6,700 and it could trade towards $7,000 in the near term.

Bitcoin price analysis

Bitcoin price started a solid upward move from the $6,340 swing low against the US Dollar. BTC/USD rallied and broke the $6,440, $6,550 and $6,620 resistance levels to move into a bullish zone.

The 2-hours chart of BTC price indicates that buyers gained traction after the price settled above the $6,400 resistance and the 100 simple moving average (2-hours).

There were back-back to bullish candles above the $6,500 level and the price rallied past $6,700. During the rise, bulls surpassed a crucial contracting triangle with resistance at $6,480 on the same chart, opening the doors for a decent rally.

The recent high was formed at $6,771 and the price is currently consolidating gains above $6,700. An initial support is the 23.6% Fib retracement level of the last wave from the $6,327 low to $6,771 high.

If the price continues to move down, the previous resistance zone near the $6,620 level may act as a support. Below this, the next major support is $6,550 and the 50% Fib retracement level of the last wave from the $6,327 low to $6,771 high.

As long as the price is above the $6,550 level and the 100 SMA, there could be more gains above the $6,771 high in the near term. BTC buyers might attempt to push the price towards the $6,900 and $7,000 resistance levels.

Overall, the current price action is positive above $6,550 for bitcoin. There could be a few swing moves, but as long as bulls are active, there are high chances of a test of the $7,000 barrier in the near term. Above $7,000, the price could find resistance near $7,150.