Bitcoin price chart analysis: new monthly high required
Bitcoin price chart analysis highlights the importance of maintaining price above the $7,000 level. Buyers need to make a new monthly high to encourage the next major push higher.
0'>Bitcoin started to come under pressure earlier this week, after buyers were unable to defend the pivotal $7,000 level.
Bitcoin price chart analysis shows that bulls must now anchor the price back above the $7,000 level and launch a fresh attack towards the current monthly trading high.
Bitcoin medium-term price trend
Bitcoin became the latest casualty of the fallout in oil prices earlier this week, as a return to risk-off trading sentiment caused the number-one cryptocurrency to plunge below the $7,000 level.
The former weekly low, around the $6,450 level, still remains intact after the BTC/USD pair found support around the $6,750 area.
This has created another bullish higher low on the daily chart and points to increased dip-buying demand for BTC/USD.
Bitcoin price technical analysis shows that the cryptocurrency needs to breach the $7,460 level in order to encourage a medium-term rally towards the $8,000 level.
Daily price closing above the $7,300 level should encourage technical buyers. It is also noteworthy that buzz surrounding the upcoming Bitcoin halving event is increasing.
Bitcoin short-term price trend
0'>Bitcoin price technical analysis shows that short-term bulls have the upper hand while the price trades above the psychological $6,700 level.
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Lower time frame analysis shows that sellers have been unable to breach the key 200-period moving average on the four-hour time frame during this latest decline.
The mentioned time frame shows that a large reversal pattern will form if bulls move the price above the $7,460 level.
If bulls move the price above the $7,640 level then a bullish breakout towards the $8,500 area may occur.
If this scenario occurs it is possible that Bitcoin could then start to trade in a much higher price range between the $7,460 to $8,500 level.
Overall, BTC/USD dip-buyers must continue to defend the $6,450 level to avoid further losses towards the $6,000 level.
Bitcoin technical summary
Bitcoin price chart technical analysis indicates that the cryptocurrency needs to hold above the $6,700 technical area to encourage the next major push higher towards the $7,460 level.