- Bitcoin moves with the bullish bias, but strong resistance on approach to $7,000 may limit the upside.
- CFTC speculative positioning report shows the record low of net short bets.
Cryptocurrency markets ended Monday with strong growth across all major coins. Bitcoin came close to $7,000 handle (Monday’s high is registered at $6,947) and retreated to $6,89 by the time of writing. The digital coin No.1 gained 2.9% in the recent 24 hours and stayed mostly unchanged since the beginning of Tuesday.
While the short-term trend looks bullish, the coin needs to settle above $7,000 before Bitcoin bulls can claim victory. Meanwhile, DMA50 and DMA100 ($6,947 and $6,927 respectively) clustered on approach to the resistance are likely to slow down the upside. A sustainable movement above the said resistance area will open up the way towards 38.2% Fibo retracement at $7,400.
On the downside, the support lies at $6,800, strengthened by 23.6% Fibo retracement; once it is cleared, the sell-off may be extended towards $6,654 (Monday’s low) and $6,600.
Meanwhile, the recent Commitments of Traders (COT) Reports Descriptions revealed that the net short Bitcoin futures positions hit the historic low last week, which may signal that Bitcoin has bottomed out as bears are exhausted by the futile attempts to take the price below critical $6,000 level.
BTC/USD, the daily chart
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