Bitcoin Price Analysis: BTC/USD Recovery Zooms Past $6,500; Signals Reversal

• Bitcoin in consolidation awaiting a trigger for an impending surge.
• The U.S. SEC is expected to rule on the nine rejected ETFs on October 26.

Bitcoin price has a long way before it can break above the long-term resistance trendline. The trendline started after the upside retracement in May this year lost momentum short of $10,000. Attempts to recover have been rendered unsuccessful with the increasing bear pressure. BTC/USD traded lows of $5,770 in June before an upward roll that hit a snag around $8,500. In the following months, Bitcoin has been unable to sustain levels above $7,000, besides it tested the support at $5,800 in August.

The stability in the market as of now is very impressive. Bitcoin has maintained the levels above $6,000 while the upside has been locked below $7,000 since the drop in the first week of September. A breakout is in the pipeline as it awaits a trigger or a catalyst. Investors are hoping that the U.S. Securities and Exchange Commission (SEC) would approve at least one of the nine rejected Bitcoin exchange–traded funds (ETFs).

At present, Bitcoin a recovered slightly after it rejected $6,500 support during the Asian trading hours. The European trading hours signal a reversal past $6,500. BTC/USD must find a support above this level to allow the bulls to strategize a retracement heading to $6,600.  The crypto still has a couple of strong support areas at $6,400, $6,200 and $6,000. On the upside, both the 50SMA and the 100SMA will limit gains above $6,500.

BTC/USD 4-hour chart