- Bitcoin price is range bound below the upper limit resistance at $7,000 and the immediate support at $6,900.
- A break below yesterday’s support at $6,800 could see Bitcoin test $6,400.
Bitcoin closed the trading last week trading at roughly $6,700. Further upward retracement continued at the beginning of this week. BTC/USD recorded highs of $7,130 but retracted below $7,000 on Thursday testing the key support area at $6,800.
According to the Bollinger bands applied to the hourly chart, volatility levels increased as Bitcoin added over $200 to trade above $7,000. Buyers’ failure to find support resulted in another dip that has found a stable ground at the 61.8% Fib level taken between the highs of $7,140 and the lows of $6,502. The price is currently range bound below the upper limit resistance at $7,000 and the immediate support at $6,900.
The buyers must take the price above $7,000 in the near-term for a further retracement to $7,500. Otherwise, a break below yesterday’s support at $6,800 could see Bitcoin test $6,400 and eventually $6,000 (traders’ margin long position).
A broader look at the BTC/USD 1-hour chart shows that the bears are in control but the volatility is averaged. The stochastic is heading towards the oversold to show that the trend is in favor of the bears. The bullish trendline is positioned to hold the price in the event $6,900 support is broken.
BTC/USD hourly chart
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