Bitcoin price has enjoyed a bullish run for the past couple of days as BTCUSD is up by over 15% thanks to dollar weakness. However, the cryptocurrency seems to be struggling to sustain its gains above $6,600.00. On the daily time frame, it can be seen that this price offers a confluence of resistance. For one, it coincides with the previous lows on BTCUSD where the cryptocurrency bottomed on November 25 and December 18. Second, when drawing the Fibonacci retracement tool from the high of March 6 to the low of March 13, it can be seen that this area also aligns with the 50% Fib level.
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A closer look at the hourly time frame would reveal another bearish setup. Bitcoin price has gotten rejected at $6,800.00 twice. Therefore, this allowed for a double top chart pattern to form. This is considered as a bearish reversal indicator and a strong close below neckline support around $6,500.00 could mean a bigger sell-off on BTCUSD.
It is worth noting, however, that the cryptocurrency has room to trade lower and still maintain its recent uptrend. By connecting the lows of March 18 and March 23, it can be seen that there is trendline support around $6,154.00. If bitcoin price does fall to this level and forms reversal candlesticks, it could suggest that BTCUSD may soon resume its uptrend. Near-term resistance would be at $6,800.00.
Alternatively, a close above yesterday’s highs at $6,866.10 would invalidate the bearish chart pattern. It may then suggest that bitcoin price is on its way to its March 6 highs at $9,150.00.