Bitcoin Once Again Hitting Support

During the weekend Bitcoin has tested the $6k level once again, which now seems to be the key price. The technical support area is seen between $6088 – $6273 and BTC has produced a spike below that level, but failed to close below on a daily chart.

While USD 6000 is holding, Bitcoin could start the upswing, targeting the previous high at $8500 area as the downtrend trendline and the 200 Moving Average were broken. The first upside target corresponds with the middle line of the descending channel and 38.2% Fibs applied to the downtrend trendline breakout point.

If first resistance at $8.5k is broken, the next key resistance is seen around $10k area, which is an extremely strong psychological resistance.

At the same time, it seems that consolidation is taking place as BTC clearly formed a strong support near $6k area, and failed to break with confidence multiple times. Yet is is possible that price will drop further, and daily close below $6k should push price lower, potentially towards $5 – 5.5k area.

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