Bitcoin is trading in a clearly defined accumulation range of 6800-7800$ for the last two months. Accumulation before a rally is overall healthy and bullish for bitcoin.
On 3D Timeframe, 200MA is acting as strong support, from where price bounced off during the last drop to 6850$.
The 7700-7900$ area is acting as a strong resistance level, also acting as the top of the accumulation range.
Price is also trading inside a large falling wedge where 7700-7900$ is acting as a resistance of the channel.
Overall, I am expecting a rejection from 7700-7900$ once again and wanted to see the price to spend/ consolidate around 6600-7000$ area for at least 1-2 days before making any further upside move.
We have only seen a quick bounce from the support level, but for clear trend change: consolidation around support before a bounce is a must - which we have seen last year when bitcoin consolidated around 3300-3600$ range before the breakout.
On 3D Timeframe, 200MA is acting as strong support, from where price bounced off during the last drop to 6850$.
The 7700-7900$ area is acting as a strong resistance level, also acting as the top of the accumulation range.
Price is also trading inside a large falling wedge where 7700-7900$ is acting as a resistance of the channel.
Overall, I am expecting a rejection from 7700-7900$ once again and wanted to see the price to spend/ consolidate around 6600-7000$ area for at least 1-2 days before making any further upside move.
We have only seen a quick bounce from the support level, but for clear trend change: consolidation around support before a bounce is a must - which we have seen last year when bitcoin consolidated around 3300-3600$ range before the breakout.