Bitcoin Consolidation – Levels to Watch

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.

  1. 6% Fibonacci retracement level at $7058
  2. 2% Fibonacci retracement level at $6829
  3. 0% Fibonacci retracement level at $6643
  4. 8% Fibonacci retracement level at $6458
  5. 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.

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