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  • BTC/USD failed to break  Andrew’s pitchfork upper line in a sustainable way.
  • Rob Sluymer from  Fundstrat thinks long-term recovery is coming.

Bitcoin  is trading at $6,680 at the time of writing, down 1.6% on Friday. The price broke below $6,700 handle during early Asian hours with no fundamental trigger readily identified.

According to  Rob Sluymer, technical strategist at Fundstrat Global Advisors, Bitcoin is showing some signs of the upcoming recovery. The digital coin No. 1 bottomed out marginally above $6,000 in the middle of June and gained 10% since that time.  

“BTC and ETH are again at important technical inflection points and need to push above their downtrends near BTC 7000 and ETH 550 to signal the recent bounce is anything more than an oversold bounce back to resistance within a downtrend that began in early May,” he explained.

Bitcoin technical picture

It seems that BTC/USD is not ready to leave the downside channel, as the price attempted to break above  Andrew’s pitchfork, but quickly returned to the previous range. Now the upside is capped by $6,700 handle strengthened by the above-said  Andrew’s pitchfork line and 500-SMA (hourly chart). Once it is cleared, the upside may be extended towards $7,000. On the downside, the support is produced by $6,400 and $6,200.

BTC/USD, hourly chart