Bitcoin Is Trading Between Support & Resistance

The Bitcoin has found the support at 76.4% Fibonacci retracement after it has been rejected together with the uptrend trendline on the 6th of February. However, on the lower scale, the uptrend trendline has been broken and Fibonacci applied to the trendline breakout point shows that the 38.2% Fibos has also been rejected on the 6th of February.

It makes the area between $6k and $6.5k a very strong support, that hasn’t been penetrated. Whats more, is that currently Bitcoin is moving within the descending channel and seem to rejected the lower trendline. All-in-all Bitcoin is facing a strong support area and if it continues to be respected by the market price could potentially correct upwards towards nearest resistance at $9k. Break above that resistance is likely to establish an uptrend towards $15k-17k area.

On the downside, weekly break and close below the $6k support should push price further down, towards $3.3k – $3.8k support area, from where Bitcoin is likely to recover very fast.

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