Daily Outlook

Bitcoin Poised For Short Term ‘Sell’ as Buyers Take Last Stand at $6,550

Yesterday, we saw a 5% decline in bitcoin price below the $7,000 support area against the US Dollar. BTC even broke the $6,800 support level and the 100 hourly simple moving average. It traded as low as $6,761 and it is currently consolidating losses. There was a break above the 23.6% Fib retracement level of the downward move from the $7,295 high to $6,761 low.

An initial resistance on the upside is seen near the $6,955 level (the recent breakdown zone). The first major resistance is near the $7,000 and $7,030 levels. There is also a major bearish trend line forming with resistance near $7,030 on the hourly chart of the BTC/USD pair.

The trend line coincides with the 100 hourly simple moving average at $7,035. Besides, the 50% Fib retracement level of the downward move from the $7,295 high to $6,761 low is near the $7,028 level. If there is an upside correction, bitcoin bulls are likely to struggle near the $7,000 and $7,030 levels. A successful close above the trend line, the 100 hourly SMA and $7,050 could open the doors for a fresh increase. The next key hurdle above $7,050 is near the $7,200 level.

Technical indicators: Hourly MACD – The MACD is currently losing momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level. Major Support Levels – $6,750 followed by $6,555. Major Resistance Levels – $6,960, $7,030 and $7,200.

Bitcoin Poised For Short Term ‘Sell’ as Buyers Take Last Stand at $6,550, NewsBTC, Apr 22

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