Bitcoin Price Rally Stalls Below Key Resistance at $6,800

Omkar Godbole
Jul 9, 2018 at 11:00 UTC
Updated Jul 9, 2018 at 22:04 UTC
markets

Bitcoin (BTC) rally has stalled near a key resistance range and a minor pullback could recharge the engine for a much-awaited move toward the $7,000 mark.

At press time, the premiere cryptocurrency is flatlined at $6,710 on Bitfinex, having clocked an 18-day high of $6,839 over the weekend and is showing signs of bullish exhaustion near the resistance range of $6,750 to $7,910.

For instance, BTC has failed thrice in the last seven days to hold on to gains above $6,754, which is the 23.6 percent Fibonacci retracement of the sell-off from $9,990 to $5,755. Further, BTC has failed to close (as per UTC) above the stiff resistance at $6,800 in the last two days.

What’s more, BTC will likely encounter resistance at $6,850 (multiple daily highs clocked in the third week of June).

And last but not the least, the 50-day moving average (MA) resistance is lined up at $6,907. Thus, the area between $6,750 to $6,910 is packed with key resistance levels and the signs of exhaustion near the resistance zone have left the doors open for a minor pullback in BTC prices.

That said, the pullback could help BTC build steam for a strong move to $7,000 as the technical studies are biased toward the bulls, as seen in the chart below.

Daily chart

The bullish falling channel breakout and the bullish crossover between 5-day and 10-day MA indicate the tide has turned in favor of the bulls for short-term.

The relative strength index (RSI) has moved above 50.00, confirming a short-term bearish-to-bullish trend change.

View

  • The short-term bullish outlook is still intact and BTC looks set to test $7,000.
  • A minor pullback to ascending (bullish 10-day MA) of $6,570, will likely help recharge the engine for a strong move towards $7,000 and above.  So, watch out for a rebound from the ascending 10-day MA.
  • Only a daily close (as per UTC) below the 10-day MA of $6,570 would abort the short-term bullish view.

Car stop sign image via Shutterstock

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.