Bitcoin traded higher on Tuesday, after it hit support near 6830 overnight. The price structure on the 4-hour chart remains of lower peaks and lower troughs since the 24th of July, but the fact that the crypto is nearing the short-term upside support line taken from the low of the 29th of June suggests that the downside correction may be at its final stages. The line could play out as a good bouncing ground for BTC/USD to move higher again.
For now, we remain positive on the near-term outlook of Bitcoin. A potential rebound from the aforementioned upside line could set the stage for a test of the 7280 level, which last time acted as strong support on the 3rd of August. This time it could take the role of a strong resistance. If the crypto decides to break that level, then this could open the door towards the next potential area of resistance at around 7700, marked by the high of the 2nd of August. Further acceleration in the price could lead to a test of the 8460 barrier, which acted as the highest point of July, a break of which could interest more bulls to jump into the action and lift Bitcoin to the next resistance zone at 8850, marked by the high of the 14th of May.
Our oscillators, the RSI and the MACD, are also somewhat in support of the upside scenario. The RSI has recently bounced from slightly above 20 and now is pointing higher. The MACD is also looking promising. Even though below zero, it is now above its trigger line and is pushing higher.
Alternatively, a drop and a close below the previously mentioned upside support line could set the stage for a test of the 6360 area, which acted as both resistance and support in the first half of July. A break below that area could open the way to the 6050 hurdle, marked by the low of the 13th of July. Slightly below lies another potential support zone, near 5750, which was the lowest point in June.
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