Bitcoin Now Likely to Revisit $6Ks After Failing to Break Resistance

Bitcoin closed the week at $7,385, which represented a 1.71% reduction in valuation.

A strong close meant that Bitcoin maintained the $7K handle throughout the week.

Looking at performance relative to its peers, Ether and XRP both outperformed Bitcoin last week against the United States dollar, which is counter-trend to what has been seen in recent weeks.

The 50 and 100-week moving averages remain crossed bullish, with the 50 week MA currently acting as resistance.

The weekly MACD continues to build the as yet unconfirmed bullish divergence, with the fifth consecutive week of higher lows on the histogram.

1-day chartThe one-day Bitcoin chart shows that price has had 4 attempts to break the $7,555 level during the month before being rejected.

Bullish scenarioThe bullish case would be that the $7,200 level will act as support and help to complete the inverted head and shoulders pattern.

Bearish scenarioThe bearish outlook is that Bitcoin is repeating the pattern seen earlier in the month where the move late on Sunday is effectively a retracement into a short opportunity for the bears, which are in control at these prices as demonstrated by the lower high.

Coincidently or not, these gaps have been getting cleared with the week with a high level of consistency so it is likely that the futures price will need to come back to this level over the course of the week.

The failure to break $7,600 so far implies that more work needs to be done before Bitcoin price can begin its journey back up to $8,000, with it being likely that more business needs to be done in the $6,000s.