Bitcoin (BTC) needs to overcome a key technical resistance to keep the short-term bull market going, the technical studies indicate.
The leading cryptocurrency rose to $6,785 on Bitfinex on Wednesday – the highest level since June 22 and looked set to test the psychological hurdle of $7,000, as suggested by Monday’s bullish breakout.
However, the bulls failed to muster enough momentum to cross $6,754 (23.6 percent Fibonacci retracement of the drop from $9,990 to $5,755) on a daily closing basis (as per UTC), establishing the Fibonacci level as a stiff resistance.
Further, a detailed look at the technical charts reveals the area around $6,754 is packed with moving average lines and Bollinger Band, all working in unison to put brakes on BTC price rally.
Hence, a convincing break above the resistance needs to happen soon, else a price pullback could be in the offing.
At press time, BTC is changing hands at $6,620 on Bitfinex.