The leading cryptocurrency Bitcoin has experienced a slight retracement after 17 days high witnessed over the weekend. And if market continues to go in this direction, then Bitcoin could lose its bullish bias should price close below $6,600, technical charts indicate.
A break below this significant price level will make it quite difficult for bulls to force a major break above the crucial resistance level at $6,970. On the flip side, should price hold above $6,600 within the next 24 hours, breaking above the significant resistance at $6,970 could be a possibility.
The leading cryptocurrency enjoyed some gains on Friday, thanks to increased interest from investors in Ripple (XRP) and other crypto assets. On Friday, Bitcoin price went above $6,600, confirming a double bottom that could see price test the psychological support at $7,000.
Regardless of this moves, altcoins price rally cooled off over the weekend. While crypto assets like XRP enjoyed a 75 percent gain at $0.77 in the US hours on Friday, the price of ripple fell back to $0.50 a day later and currently looks likely to drop below that level.
Also, other big gainers like aurora and monacoin lost a major chunk of their gain over the weekend.
To this end, the rally in BTC was cut short at a 17-day high of $6,841 on Saturday. As at the time of writing this report, Bitcoin is exchanging for $6,610 on Bitfinex – and down by 1.8 percent.
Looking at the daily chart, you’ll agree that a break below $6,600 (neckline support) would quash the bullish setup indicated by Friday’s double bottom breakout.
More so, it’s important to note that Bitcoin found takers below that level on Saturday. This means, the bears may want to see price close below $6,000 before jumping the gun.
Nonetheless, should the leading cryptocurrency defend $6,000 in the next 24 hours, then the top of pennant pattern clearly seen at $6,970, could come into play.
A close look at the weekly chart shows that BTC created a bullish outside-week candle last week, this further gives confidence to the persistent defense of $6,000–$5,800 range over the last three months. Consequently, the chances of BTC rising to pennant resistance of $6,970 is quite viable in the near-term