Quick update on the Bitcoin market vs the US Dollar, after resistance broke yesterday, the bulls pushed the prices up to $6940, before the bears answered with some selling to do. Correction in the market here is quite possible as we are facing our next resistance zone, which is $7000 – $7200. Lets take a look at the 1hr chart.
On the shorter term the price action is testing the top of my bullish channel indicated on the chart, this also happens to be the next ceiling, bulls will have to push prices past $7k to get the fomo going in the market.
We can see from the momentum indicator that we could turn bearish soon, on the shorter term speaking. Traders on leverage would be booking some profits and looking for the possible quick short, please note, higher risk trading.
Should we face a correction here before we go higher, I would put support at around $6750 – $6800 on the short term, and $6600 should act as support on the medium term should the above mentioned levels fail.
Should no new fundamentals creep in to spoil the party, I am expecting a bit of consolidation in this price zone before moving up. Trading range to look out for, $6750 – $6950. Should we consolidate above $7000, I would expect the market to possibly test $7200.
On the flip side, should the bulls fail to keep prices above $6900, we will see some more corrections in the market. Safe trades.