Bitcoin Price Analysis: $6,700 resistance separate BTC/USD bulls from their goal at $7,000

BTC/USD has recovered strongly to trade above $6,500.
Further upside may be capped by $6,700 handle.

BTC/USD is changing hands at $6,682 with marginal gains since the beginning of Friday’s trading in Asia. The digital currency No. 1 recovered above critical $6,500 handle and touched $6,733 late on Thursday amid strong growth across the digital assets market. If the bullish momentum gathers pace, BTC/USD will end this working week in a green zone, registering the third week of growth in succession.

Bitcoin’s technical picture

Looking technically, BTC/USD broke above 38.2% Fibo retracement level for the downside move from September 4 high at $7,400. While this development is considered being a positive signal, the price needs to clear the next hurdle produced by 50% Fibo retracement before the bull can claim a short-term victory. This area stopped the recovery during the previous week so it might be a hard nut to crack. However, once it is broken, the upside will speed up with the next aim at $7,000.

On the downside, the local support is created by $6,612 (the above 38.6% Fibo retracement), followed by $6,520 (confluence of SMA100 and SMA50, 1-hour chart) and $6,424 (38.6% Fibo retracement). Once below, the sell-off is likely to continue towards September 25 low at $6,327.

BTC/USD, 1-hour chart

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