Bitcoin price is trading above the $6,520 support zone against the US Dollar. BTC/USD looks set to clear the all-important $6,660 resistance to trade higher.
- Bitcoin is attempting an upside break above the $6,660 resistance level.
- BTC/USD is likely to break a major contracting triangle with resistance at $6,550 on the 2-hours chart.
- BTC price remains supported on the downside near the $6,520 and $6,510 levels.
Bitcoin price analysis
During the past three sessions, bitcoin price traded in a range with a bullish angle above the $6,520 support against the US Dollar. BTC/USD is still struggling to clear the important $6,660 resistance, but it looks set to make the next move in the near term.
The 2-hour chart indicates that the $6,660 level is a solid resistance as it acted as a support and resistance on several occasions. Recently, the price moved above the $6,600 level and 100 simple moving average (2-hours), but it failed to settle above $6,660.
The stated $6,660 level is a key technical resistance since it is the 61.8% Fib retracement level of the last drop from the $6,814 high to $6,430 low. More importantly, the $6,650-6,660 level is a significant pivot area.
Additionally, there is a major contracting triangle in place with resistance at $6,550 on the same chart. Therefore, bitcoin buyers need to clear the $6,650-6,660 resistance zone to gain upside momentum.
The next major resistance above $6,650-6,660 is near the $6,785 level, above which the price is likely to accelerate gains above the $7,000 hurdle.
On the flip side, the triangle support at $6,520 is a crucial zone for buyers and sellers. If sellers succeed in pushing the price below $6,520, there could be a short-term downside break. In the mentioned case, the price is likely to decline towards the $6,430 swing low.
Overall, bitcoin is preparing for the next break and if buyers remain in action for a few more hours, there could be a break above the $6,660 resistance. The market sentiment is improving, which is also a good signal for an upward move towards $6,800 and $7,000.