Bitcoin overnight trading (US CST) produces very little volatility, however, still maintains course with some upside price action. Low volatility and the fact that BTC has been testing the 6600 pivot area – not to be confused as a support or resistance area – has provided a stable ground for the price to now seek higher levels.
Support stands firm at 6400 while resistance remains at 6800. As BTC seeks out resistance at the moment, entries at 6610 should be held firm unless a second breakdown of the 6600 mark occurs.
As the next support level down is 6400, it should also be noted that long-term bearish upper trend line now stands at about 6280 and decreases with every hour.
This level is now reaching the 6250 major pivot area – a little bit of a concern with BTC now retracing. If the 6600 area does not hold and BTC seeks out 6400 once again, expect the 6250 level to be tested once again. This has held as a long-term pivot area, producing two higher lows* in the last few months alone while BTC has remained in an overall bear trend for the entire year.
With all this noise, the main focus at the moment is for the price action to hold the 6400 support area (which it is currently doing well) and to seek out the next resistance point up at 6800.
The current retrace has officially held 1/2 of the previous leg up, giving hint at the continuation of upside movement.
Additionally, the price is now set to meet the MA line as shown on the mid scale. This will give a boost to BTC to break out of the zone it has been trading in since the major breakout, roughly 6500-6700.
Stochastic mid-term seeks the overbought (>80) level.
MACD momentum is bullish and looks to cross to the upside at this time.
BTC is currently a hold with downside protection under 6600.