Bitcoin's surge in the last 24 hours has been splendid, a 24% surge in the last 23 hours. The market cap, which had dipped below $100 billion is now at $120 billion and has a 24-hour trading volume at $57.6 billion.
BTC surged from $6,190 to $6,990 in 7 hours, however, it failed to capture $7,000 and is has started a pullback. This pullback could unveil itself in two different scenarios, each sending the price in a different direction.
- Since hitting $6,990, BTC has seen an 8% decline in price and looks like more downtrend is underway.
- The pullback has two support levels, one at a 4% decline from the current price and the other at 11% decline.
- If the pullback finds support at the first level, BTC has a potential surge of 32% coming for it.
The one hour chart indicated that the consolidation for BTC was completed and that the price was on its way to conquer $7,000, $8,000 and other important psychological levels. On its way to these levels, bitcoin faced resistance at $6,990, which prevented the price from rising higher. This has resulted in a pullback that has plans of dragging bitcoin back to $6,190 and $5,775.
The first level would mean the price has to decline a total of 4%, the other level would cause bitcoin to trend downwards and shed 11%. A bounce from either of these levels would have a higher chance of breaching the resistance at $6,190 and $6,990.