In the previous sections bitcoin traded well above the $6,660 and $6,700 support levels against the USD. There were several unsuccessful attempts by the bears to push the price below the $6,666 support. BTC recently formed a low near $6,650 before it started a fresh increase. On its way up, it managed to break the $6,765 resistance level and the 100 hourly SMA.

Notably, there was a break above a major bearish pattern, with resistance near $6,800, on the BTC/USD hourly chart. The price is currently trading well above the $6,800 and $6,850 levels. It is also testing the 50% Fib retracement level of the key downward move from the $7,263 high to $6,612 low.

On the upside, the major resistance is close to the $7,000 level. The 61.8% Fib retracement level of the recent downtrend from the $7,263 high to $6,612 low is also near the $7,015 level, acting as a resistance. A successful break above the $7,000 and $7,015 resistance levels is likely to spark a strong rally in the coming sessions. The next major resistance is close to the $7,200 level, above which the bulls are likely to test the $7,500 resistance level.

On the downside, if BTC fails again to trade above the $7,000 resistance, it could begin another downtrend. An initial support is close to the $6,800 level. A break below this level could spark a decline towards $6,765. The main support still remains near the $6,660 level. A successful break below this level could lead to a further decline towards the $6,200 and $6,000 levels.

Technical Indicators:

The hourly MACD for the BTC/USD trading pair is now gaining momentum in the bullish zone. The hourly RSI (Relative Strength Index) for the pair is currently well above the 60 level. Major support levels are at $6,800 and $6,600, whereas major resistance levels are at $7,000, $7,200 and $7,500.