- Bitcoin faces strong resistance close to the $7k mark
- BTC tests a high of $6,989 and corrected lower
- Bitcoin finds strong support near $6,400
Bitcoin News Today – The price of Bitcoin (BTC) has been relatively stagnant over the past day. The digital currency is encountering a strong hurdle close to the $7k mark against the U.S. dollar. The price of the digital currency is likely to form a double top pattern close to the $7k mark and it could plunge below the $6,400 support mark.
Bitcoin Encounters Stiff Hurdles
Over the past few trading sessions, the digital currency has been trading well over the $6,400 support zone against the U.S. dollar. The price of BTC even surged over the $6,800 hurdle point and settled over the 100 hourly simple moving average. Nevertheless, the bulls seem to be struggling close to the $7k hurdle point.
There seems to be a formation of a double top pattern with a hurdle close to $7k. The last swing high was formed close to the $6,989 mark before the digital currency corrected lower. There was also a break below the 23.6 percent Fibonacci retracement level of the previous swing from the low of $5,750 to the high of $6,989.
Bitcoin (BTC) Price Today – BTC / USD
On the downside, the $6,500 mark is acting as strong support for the digital currency. However, the major support for the digital currency is close to the $6,400 mark and the 100 hourly simple moving average. It is also close to the 50 percent Fibonacci retracement level of the previous swing from the low of $5,750 to the high of $6,989.
If the digital currency breaks below the $6,400 support mark and the 100 hourly simple moving average, it could start a sharp downward movement. Below the $6,400 mark, the next support is close to the $6,200 zone. Moreover, there is a formation of a crucial bullish trendline with support close to the $6,240 mark on the hourly chart of the BTC/USD trading pair.
A break beneath that trendline support will confirm the highlighted double top pattern. If this happens, the price of the digital currency is likely to head towards the $6k and $5,800 support levels.
Bitcoin Is Still In a Bullish Zone
If the world’s most dominant digital currency remains well bid over the $6,500 and $6,400 support marks, it could start a little rally that will push its price over the $7k hurdle point in the coming sessions. A clear break over the major $7k hurdle point could pave the way for more gains towards the $7,500 mark and perhaps disaffirm the double top pattern