- Bitcoin spikes briefly but fails to sustain growth above $6,600.
- Bitcoin price consolidation is over; bulls get ready for an upswing.
There is a ray of green light that is crossing through the entire cryptocurrency market. Bitcoin (BTC) has corrected higher above the levels we explored in the earlier published analysis, in turn opening the way for other digital assets to increase in value, although slightly. BTC/USD recently broke above the bearish trendline resistance. Consequently, this move triggered a retracement heading to $6,600 but failed to break past this level.
The crypto consolidated the subtle bearish correction during the Asian trading hours. It formed a low of $6,545.57 and spiked further above $6,600 forming a high at $6,606. At present BTC/USD has trimmed intraday gains and is trading at $6,577. Applying Bollinger bands shows that consolidation is likely to coming to end as Bitcoin buyers battle to establish a support above $6,600.
Looking at technical indicators, we see that the RSI has reentered the overbought region. Although the bulls have been lacking enough power to sustain growth above $6,600, they have been in control since October began. The DMI, on the other hand, is retreating from the high levels to show that the bulls are losing grip. However, generally the trend is bullish but lacks momentum to stay above $6,600.
At the moment, BTC/USD is seeking for a support at $6,580 while the next support target is visible at $6,545. Other support areas include $6,500, $6,400 and $6,200.
BTC/USD 15′ chart
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