Stuck Between Key Chart Points, Bitcoin Price Seeks Direction

Bitcoin price is stuck in a $400 range defined by key technical levels and the direction of the breakout will likely set the tone for the next move in the cryptocurrency.

A convincing move above $6,754 would signal a resumption of the rally from $5,755 and would open the doors to $7,000, as indicated by the double bottom breakout and bull flag breakout earlier this week.

The bears may feel emboldened by BTC's transition from rising channel to falling channel, as seen in the chart above.

Further, Bollinger Bands are trending south, indicating a bearish setup.

BTC is also trading below 50-hour and 100-hour moving average, indicating the path of least resistance is to the downside.

50-hour MA risks falling below 100-hour MA in the next few hours.

The chart also shows Bollinger Bands have adopted bearish bias.

View BTC risks falling below $6,341 as indicated by the bearish setup on the hourly and 4-hour chart.

Acceptance below $6,341 would abort the bullish view put forward by the double bottom breakout, bull flag breakout and bullish falling channel breakout and would shift risk in favor of a drop below $6,000.

On the higher side, an aggressive move above the significant obstacle of $6,754 would bolster the already bullish technical setup on the daily chart and open doors to $7,000.