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.
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.
- 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.