Bitcoin (BTC) Price Analysis: Watch out for this Resistance (7-Jul)

What is Bitcoin (BTC) Doing Right Now?

Bitcoin is currently trading around the $20,500 mark and is trying to gain some bullish momentum on the lower timeframes. The price has mainly been consolidating around the $20,000 mark, and there is not enough buying pressure to trigger a breakout. The resistance we are currently watching for Bitcoin is the $20,600 mark. If Bitcoin closes a couple of 1-hour candles above it in the coming hours, we can expect some bullishness in the immediate short term. Let's take a quick look at the latest Bitcoin charts to see where the price could be headed in the coming hours.

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Analyzing the Charts

If we take a look at the latest 1-hour charts for Bitcoin, we can notice that the price has rejected $20,600 several times in the past week.

Once the price starts closing 1-hour candles above this level, we can expect Bitcoin to make a move towards the upside. The resistance level we are watching for BTC in that scenario is the $21,700 region.

The $21,700 mark has been acting as a strong resistance since June, and BTC needs to get above it to gain some serious bullish momentum.

Also, if we draw the Fibonacci tool from the local top to bottom, we can see that the current resistance is sitting around the 0.618 level of Fibonacci.

On the other hand, if Bitcoin faces another rejection of around $20,600, we can expect the price to drop further in the coming hours. The support level we will be watching next in that scenario is the $19,800 mark.

Conclusion: Final Verdict on Bitcoin (BTC)

Bitcoin is currently trading around a crucial resistance level and could go either in the immediate short term. If the price breaks above this resistance convincingly, BTC will retest the $21,700 region again. The $21,700 mark is strong resistance, and rejection there is highly likely. It would also give us an opportunity to enter a short position.

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