Cautiously Bullish: Bitcoin Price Faces Key Hurdle Above $7.1K

Bitcoin (BTC) is looking north, having scaled $7,000 on Tuesday, but its close proximity to a key resistance zone and the short-term overbought conditions are calling for caution on the part of the bulls.

The leading cryptocurrency jumped to a three-week high of $7,128 on Bitfinex yesterday and closed well above the 100-day moving average (MA) hurdle, signaling a continuation of the rally from the Aug. 14 low of $5,859.

However, the 21 percent price rise witnessed in the last two weeks is looking overstretched, as per the short-duration technical studies.

As a result, BTC may have a tough time scaling the immediate resistance zone of $7,160–$7,180 in the next 24 hours and could suffer a minor pullback before extending the ongoing rally.

At press time, BTC is changing hands at $7,100 – up 2.28 percent on the day.

Daily chart

As seen in the above chart, BTC’s convincing move above $7,000 has bolstered the already bullish setup as indicated by the higher highs, ascending 5-day…