Bitcoin has established an uptrend as price continues to produce higher highs and higher lows. The most recent high was established on the 2nd of September where BTC/USD price reached $7430 level. The 38.2% Fibonacci retracement level, applied through the 24th of June low and 24th of July high, has been rejected, thus suggesting a potential corrective move down.
It is now possible that Bitcoin will enter the short-term consolidation phase, especially considering recent growth, resulting in a 24% gain during the past two weeks. If price will not break above the $7430, Bitcoin might start ranging between $7430 resistance and $7050 support.
If BTC/USD breaks with the daily close above the $7430, the uptrend continuation could take place, pushing the price towards the $10k strong psychological resistance. On the other hand, if price breaks and closes below the $7050 support, further corrective move down might follow.
There are several Fibonacci support levels to watch in case the correction will start.
- 6% Fibonacci retracement level at $7058
- 2% Fibonacci retracement level at $6829
- 0% Fibonacci retracement level at $6643
- 8% Fibonacci retracement level at $6458
- 4% Fibonacci retracement level at $6230
To summarize, the Bitcoin short-term trend remains bullish and probability of the uptrend continuation remains high. Although, while price is below the $7430, range trading is likely to take place. On a downside, break below the $7058 support would invalidate bullish outlook, and price is likely to continue moving lower.