- Bitcoin recovery stalls marginally above $7,000 as consolidation begins.
- Due to the lack of credible support areas, Bitcoin is likely to revisit the recent support of $6,500.
Bitcoin’s recovery mojo lost steam short of $7,400 earlier this week. The price action has been more or less consolidative in the past couple of days. The buyers are keen on holding BTC above $7,100. Meanwhile, the existing trend is bullish amid low volatility.
In the last 24 hours, bitcoin has corrected 0.28% upwards. Data by CoinMarketCap shows Bitcoin trading volume at $20 billion over the previous 24 hours. With a market capitalization of $130 billion, Bitcoin dominance on the market sits at 66.2%.
Confluence levels
The confluence tool highlights $7,161 as the first significant resistance zone. A cluster of technical indicators converges here consisting of the SMA ten 1-hour, the Bollinger Band 1-hour middle, the previous one-hour, the SMA 100 15-minutes, the SMA ten 4-hour, the 61.8% one day as well as the previous high 15-mins.
Bitcoin will probably settle in the range between the resistance mentioned above and the next hurdle at $7,532 before a breakout ensues towards $8,000. Some of the indicators marking the resistance at $7,532 include the Bollinger Band 4-hour upper, pivot point one-month support 1, Fibonacci 38.2% one-week, and pivot point one-day resistance two. Above the range limit, the movement towards $8,000 will be relatively smooth.
On the flip side, Bitcoin’s support remains in jeopardy. The only medium-strong support is observed at $6,791. The area is playing host to the Fibo 161.8% one-day, the Bollinger Band one-day lower, and the previous week low. In other words, Bitcoin must stick above $7,000 to avoid another devastating trip towards $6,000.
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