BTCUSD stays in a bullish price channel on its 4-hour chart and remains in the uptrend from 5020. As long as the price is in the channel, the pullback from 7887 could be treated as consolidation of the uptrend, and another rise could be expected after the consolidation.

Near term support is at 6900, followed by the bottom support trend line of the channel now at round 6750. As long as these levels hold, the uptrend could be expected to resume and a breakout of 7887 resistance could trigger further upside movement towards 9000.

On the downside, a clear break below the bottom of the channel will suggest that the uptrend from 5020 had completed at 7887 already and lengthier consolidation for the longer term uptrend from 2970 is underway. Then the Bitcoin price would find support at the bullish trend line on the daily chart now at around 6300.

Only breakthrough this trend line could confirm that the uptrend from 2970 is complete, then the Bitcoin price would find next support at 6100. Below here could trigger further downside movement towards 5020.

For long term analysis, the Bitcoin price remains in a solid uptrend. There is no evidence so for that the bitcoin is in the process of reversing from uptrend to a downtrend.

Technical levels

Support levels: 6900, 6750, 6300, 6100, 5020, 2970.

Resistance levels: 7887, 8000, 9000.

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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