The Turn of Bitcoin Price to be Determined by Next Breakout

The price of Bitcoin is currently hovering in a range $400 wide, which is supported by key technical levels. The awaited breakout will define the further behavior of the financial technology on the crypto market. It has a good chance to go down or increase to $7, 000.

The lower part of the trading range is $6,341, while the double bottom neckline (former resistance provided by support), which was increased on June 30. Furthermore, $6,754 shows 23.6% of Fibonacci retracement from sales of $9,990 to $5,755, slowing down the BTC rally earlier this week. This indicates the upper end of the Bitcoin trading range.

If the cryptocurrency jumps above $6,754, it will mean a resumption of the rally from $5,755 (the lowest mark on June 24) and will give an opportunity to reach $7,000, as evidenced by the double bottom breakout and bull flag breakout a couple of days ago.

However, if we look at the situation from a different point of view, the bullish case may be significantly weakened if prices make a lodgement at the mark lower $6,341.

Nevertheless, the diagrams of short duration show that the most apparent turn will be in favor of a breakdown of the downward trade line. According to the press time, the price of Bitcoin is trading at $6,520 on Bitfinex - down 1 percent on a 24-hour basis. A bearish mood is also indicated by the Bollinger bands (standard deviation of +2, -2 on the 20-hour moving average), which are stretching to the south and marking a falling trend.

The BTC is changing hands below the 50-hour and 100-hour moving average (MA). That also means that the path of least resistance is moving down.