Bitcoin Is Recovering Nears $7,000 Resistance

In the last 48 hours, Bitcoin has been recovering after its sudden fall to a  $6,600 low. The pair's sudden fall has been dramatic. It had an initial rebound at the $6,800 low and rallied to $7,200.

Unexpectedly, there was a sharp drop to $6,600 Low but the bulls pulled back. Initially, there was a second thought that the downtrend had just begun since Bitcoin was in the bearish trend zone.

Surprisingly, after the pullback above $6,700, BTC moved up to $6,905 at the time of writing. In the meantime, the price has been fluctuating between $6,800 and $6,900. As the pair recovers, the bottom line is to battle the $7,000 resistance and overcome it. Failure of bulls to overcome the resistance above $7,000 will result in a fresh downward move. Nonetheless, BTC is trading near $7,000 resistance.

Bitcoin Indicator Reading 

The pair is at level 49 of the Relative Strength index. In other words, BTC is in the downtrend zone and below the centerline 50. The EMAs are horizontally flat indicating a range-bound movement.

Key Resistance Zones: $10,000, $11,000, $12,000

Key Support Zones: $7, 000, $6, 000, $5,000  

What Is the Next Direction for BTC/USD?

Last week, the pair was trading as high as $7,400 and as low as $6,500. Presently, the market is nearing the resistance zone. BTC will rise if the bulls propel price above $7,400. It will indicate strong buying by the bulls.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.