Bitcoin Price Watch: BTC/USD Forming Breakout Pattern Above $6,600

Key Points

• Bitcoin price is trading in a contracting range with support above the $6,600 level against the US Dollar.
• There is a major contracting triangle in place with resistance around $6,740 level on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to make the next move either above $6,750 or below $6,600 in the near term.

Bitcoin price is trading in a positive zone above $6,610 against the US Dollar. BTC/USD is preparing for the next move either above $6,750 or below $6,600.

Bitcoin Price Analysis

During the past few hours, there were many attempts to surpass the $6,750 resistance by bitcoin price against the US Dollar. The BTC/USD pair struggled to gain momentum above $6,750 and traded in a range. The last swing low was formed at $6,560 before the price moved higher. The price traded above the $6,610 level and settled above the 100 hourly simple moving average. There was also a break above the 61.8% Fib retracement level of the last slide from the $6,777 high to $6,560 low.

However, the upside move was capped by the $6,750 resistance. More importantly, there is a major contracting triangle in place with resistance around $6,740 level on the hourly chart of the BTC/USD pair. The pair has to move above the triangle resistance and $6,750 for more upsides. Should there be a break above the $6,750 level, the price may well test $6,829. It represents the 1.236 Fib extension level of the last slide from the $6,777 high to $6,560 low.

Looking at the chart, if bitcoin corrects lower, the triangle support at $6,660 is likely to hold losses. Below this, the $6,610 level and the 100 hourly SMA are likely to act as buy zones. Overall, the price is likely to make the next move either above $6,750 or below $6,600.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is slightly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is placed above the 50 level.

Major Support Level – $6,610

Major Resistance Level – $6,750