Bitcoin Rally Hits a Speed Breaker at $6,750

Bitcoin needs to overcome a key technical resistance to keep the short-term bull market going, the technical studies indicate.

The bulls failed to muster enough momentum to cross $6,754 on a daily closing basis, establishing the Fibonacci level as a stiff resistance.

Further, a detailed look at the technical charts reveals the area around $6,754 is packed with moving average lines and Bollinger Band, all working in unison to put brakes on BTC price rally.

A convincing break above the resistance needs to happen soon, else a price pullback could be in the offing.

BTC is trading above 50-candle MA and 100-candle MA and both MAs are trending north.

Clearly, the odds are stacked in favor of a convincing move above the resistance zone of $6,717-$6,770.

The bullish setup in the daily chart also favors a rally to $7,000.

If BTC fails to pick up a bid in the next few hours, the focus will likely shift to the bearish price-relative strength index divergence seen in the 4-hour chart.

An aggressive move above the resistance zone of $6,717 - $6,770 would add credence to the bullish setup in the 4-hour and daily chart and would allow a rally to $7,000.

The focus would shift to the bearish RSI divergence if BTC fails to cut through the resistance zone of $6,717-$6,770 in the next few hours.