The zone between 6,790 and 6,845 USD has been providing support to buyers for the last 3 days. Sellers have tried to break through it 5 times to no avail. In today’s European session, buyers have broken the trend line. They managed this with no effort whatsoever as the price had been caught in a sideways trend for 63 hours, and had nothing changed over the next few hours, this trend would have been broken during the US session regardless. I call this a break in time.
Bitcoin likes to exit these pricing models upwards. The critical value for buyers is 7,165 USD. If they manage to break through this level with volume, while triggering stop levels from sellers, the price will move to 7,490/500 today. Technical and psychological factors will both come into play here.
If 7,165 proves too tough for buyers, short positions will come back in force from here. Only in this case will the bears definitely reach 6,600 USD.
Click here to open an account at Alpari.