On the upside, there is a significant resistance waiting near the $8,000 level and the 100-day simple moving average. There is also a key bearish trend line forming with resistance near $7,880 on the daily chart of the BTC/USD pair.
If the bulls are able to clear the $8,000 resistance and the 100-day SMA, it could start a medium term uptrend.
There are also high chances of bitcoin failing near the $8,000 resistance area. If there is a rejection near $8,000 or $7,880, the price could start a downside correction.
An initial support is near the $6,800 level (the recent breakout zone). The main support is now near the $6,500 level, where the bulls are likely to take a stand. Any further losses may perhaps lead the price towards $5,500.