Bitcoin is leading from the front. It has been sustaining above the 20-day EMA for the past seven days. For the past two days, it has been consolidating near the overhead resistance of $6,953.38.
A breakout above $7,000 increases the probability of a rally to $7,750, where the BTC/USD pair will face strong selling pressure from the downtrend line and the horizontal resistance.
Once this level is crossed convincingly, a rally to $10,000 should be on the cards.
If the bears reverse direction from the current levels, the virtual currency can form a probable right shoulder of a developing inverted head and shoulders (H&S) pattern as long as the dip remains above $6,250.
We recommend to hold the long positions initiated at $6,650. Our bullish view will be invalidated if the cryptocurrency breaks below $5,900.