SINGAPORE- Bitcoin still targets $6,904 as it has cleared a resistance at $6,412.

The resistance was provided by the 50 percent projection level of a downward wave C from $8,496.96, which is the third wave of a presumed three-wave cycle from $9,948.98. The next resistance will be at $6,904.

After breaking above $6,412, bitcoin has been trying to stabilize around this level for a few days. This consolidation could have prepared bitcoin with enough bullish momentum to rise to $6,904.

A drop below the Aug. 18 low of $6,303 may be extended to $5,921.

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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

(Reporting by Wang Tao; Editing by Gopakumar Warrier) ((wang.tao@thomsonreuters.com; 65 + 6870 3836; Reuters Messaging: Reuters messaging: wang.tao.thomsonreuters.com@reuters.net; ?? TASSTAO))