3 Hurdles Could Complicate Bitcoin's Price Recovery

Forcing a bitcoin price breakout is looking anything but easy for the bulls, with the path to $7,400 being littered with resistance levels.

Stepping back, the leading cryptocurrency jumped above $6,800 on Monday, neutralizing the bearish view put forward by a downside break of a trendline support last Friday.

BTC clocked a high of $6,810 on Monday, but closed at $6,440, keeping intact the resistance of the trendline drawn between the July 25 and Sept. 5 highs.

At press time, the cryptocurrency is trading around the trendline resistance of $6,430 on Coinbase.

A high-volume close above that level would open the doors to the next resistance level lined up above $6,800.

BTC's failure to hold above $6,823 on Monday has established that level as a key near-term resistance.

The trendline connecting March highs and July highs is currently located at $7,020 and could cap upside.

The longer the duration of the trendline, the more validity is attached to the support or resistance level it represents.

The prospects of a bull breakout above $7,400 would rise sharply if BTC manages to clear this eight-month-long falling trendline on the back of strong volumes.

A break above the trendline sloping downwards from March highs could be considered an early sign of impending bullish reversal above $7,402.