Technical analysis of Bitcoin for August 7, 2018

Bitcoin got rejected at the resistance we previously noted as the most important level bulls need to break in order for the trend to continue higher. The price, on the other hand, got rejected, bulls were not strong enough and the price is now challenging cloud and Fibonacci retracement support levels.

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Black rectangle - resistance

On a daily basis, the price has entered the Kumo (cloud) and this is not a good sign. Support is at the 61.8% Fibonacci retracement level. Price is inside the Kumo. Bulls need to reverse to the upside from current levels. Next support that bulls must hold is at 6,700$. A bounce from this area could be the start of the breaking move above the black rectangle resistance area.

The material has been provided by InstaForex Company - www.instaforex.com