Since our previous Bitcoin analysis, BTC had failed to break the $7,350 strong resistance level and shortly afterwards we’ve seen drop to $7,000 and back to the strong support level at $6,600.
Overall, the market had not much volume and the last day’s candles are quite small, which tells about reduction in volatility level. So far the $6,600 seems to hold, but it can change quickly. Right now we are testing short-term resistance level at the MA-50 (moving average 50 days – the purple line in the following chart), it’s more likely to see some correction before breaking it up, but if it does happen then the $7,350 level would be next to be tested again. Besides there is the $7,800 – 8,000 zone.
From the bear side – breaking down the important $6,600 level and we will likely see Bitcoin testing the the low of Feb.6 at $5,900 – $6,000.
BTC/USD BitFinex 4 Hours chart