Bitcoin prices fails to close above key resistance level
As a recent Digital Journal article reported, bitcoin’s price was expected to test the $7,000 level this week but up to now it has failed to do so.
Technical studies show that the price has so far failed to overcome a key resistance level. Bitcoin’s closing price has not been able to cross $6,754 which is the 23.6 Fibonacci retracement of the drop from $9,990 to $5,755 which shows this level is a stiff resistance. Fibonacci retracements are explained in this article.
The technical charts also show that around $6,754 are several moving average lines and Bollinger Bands that all lumped together serve to put brakes on any attempt so far to rally further toward the $7,000 level. If the BTC price is unable to break through this resistance than another price decline could be in the offing.
As the CoinDesk article went to press at 11:00 UTC on July 5 the price of BTC on Bitfinex was $6,620.
CoinDesk Analysis
The four-hour chart shows the Bollinger Band is at $6,570. The 200-candle moving average (MA) is also near at $6,717 and the 23.6 percent Fibonacci replacement is also nearby at $6,754. However, the Bollinger bands are sloping upwards, a positive sign for the bulls.
Bitcoin is trading above the 50-candle moving average (MA) and 100-candle MA. This favors the bulls. A rising channel channel-like structure is being created that also favors the bulls. The odds are in favor of a move above the resistance zone of $6,717 to $6,770. The daily chart setup also favors a rally up to $7,000.
However, if there is no rise in the next few hours attention may be focused on the bearish relative strength index (RSI) that can be seen in the 4-hour chart. If the rising channel is breached to the downside this could trigger a deeper drop in BTC prices.
The CoinDesk viewpoint
On the basis of their technical analysis CoinDesk predicts: “An aggressive move above the resistance zone of $6,717 – $6,770 would add credence to the bullish setup in the 4-hour and daily chart and would allow a rally to $7,000. The focus would shift to the bearish RSI divergence (seen in the 4-hour chart) if BTC fails to cut through the resistance zone of $6,717-$6,770 in the next few hours. In this case, prices could fall back to $6,330 (50-candle MA on 4-hour chart). A close below $6,275 (Monday’s low) would abort the bullish view.”
Present situation
The BTC price opened today, July 5, at $6,584. The high so far has been just $6,680. with the low $6,535.
At 15:53 UTC the price of BTC was $6,602 just a rise of 0.29 percent from its opening. No sign of a break through any of the resistance levels but the price is still above the open. However, there are still eight hours left in the day. The present price of bitcoin can be found here.
