Bitcoin Price Analysis: All Eyes On $6800 Into The Monthly Close

As Bitcoin price approaches the Monthly candle close after a volatile day yesterday, we take a look at what’s going on in the market.

4 Hour Chart

Looking that the daily chart, after closing the previous week at $6,700, Bitcoin 00 began a bullish start to the week, trading at highs of $7,125 breaking the linear resistance by Tuesday.

Volatile moves followed on Thursday with Bitcoin dropping back to retest the previous resistance of $6,800 where support was found and a sharp $200 move back up to $7,000. Some traders will view resistance turning into support [otherwise known as a Wyckoff Throwback], as being bullish after a period of accumulation.

Despite the bullish move, c.5,000 short contracts were closed at Bitfinex during the $6,800 retest, meaning the margin long positions now outweigh the shorts, limiting the ability for the bulls to trigger a short squeeze in the stretch to test $7,500. The close out of the shorts may represent the market being more convinced of a floor at…