Bitcoin Awaits Price Breakout As Trading Range Tightens

in dollars •  4 months ago

The price of bitcoin (BTC) is stuck in a $400 range defined by key technical levels, and the direction of the breakout will likely set the tone for the next move in the cryptocurrency.
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The trading range's lower end is $6,341, a double bottom neckline (former resistance-turned-support), which was scaled on June 30. Meanwhile, $6,754 (a 23.6 percent Fibonacci retracement of the sell-off from $9,990 to $5,755), which put brakes on BTC's rally earlier this week, marks the upper end of the trading range.

A convincing move above $6,754 would signal a resumption of the rally from $5,755 (June 24 low) and would open the doors to $7,000, as indicated by the double bottom breakout and bull flag breakout earlier this week.

On the other hand, the bullish case would weaken significantly if prices find acceptance below $6,341.

That said, the short duration charts indicate the odds are stacked in favor of a downside break of the trading range. At press time, BTC is changing hands at $6,520 on Bitfinex - down 1 percent on a 24-hour basis.

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