Analysis

Bitcoin (BTC) Price Primed To Break $8.5K, Dips Remain Supported

  • Bitcoin price started a downside correction after trading close to $ 8,350 against the US Dollar.
  • The price declined below the $ 8,000 support and tested the $ 7,600-7,630 support area.
  • There is a short term bearish trend line forming with resistance near $ 8,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could retest the $ 7,600 support area before it could start a fresh increase above $ 8,200.

Bitcoin price corrected lower recently below $ 8,000 against the US Dollar. However, BTC remains well bid above $ 7,600 and it is likely to climb back above $ 8,200 and $ 8,300.

Bitcoin Price Analysis

Yesterday, we saw an extended rally in bitcoin price above the $ 8,000 barrier against the US Dollar. The BTC/USD pair broke the $ 8,200 and $ 8,300 resistance levels. It traded close to the $ 8,340 level and a new 2019 high was formed at $ 8,338. Later, the price started a downside correction below the $ 8,200 support, but remained well above the 100 hourly simple moving average. The price declined below the $ 8,000 support level and traded close to the key $ 7,600 support area. A swing low was formed at $ 7,631 and the price recovered recently above $ 8,000.

There was a break above the 50% Fib retracement level of the recent decline from the $ 8,338 high to $ 7,631 low. However, the price seems to be facing a strong resistance near $ 8,150. The 61.8% Fib retracement level of the recent decline from the $ 8,338 high to $ 7,631 low is also preventing an upside break. Moreover, there is a short term bearish trend line forming with resistance near $ 8,100 on the hourly chart of the BTC/USD pair. Therefore, the pair needs to clear the trend line and $ 8,150 to start a fresh increase.

On the upside, an immediate resistance above $ 8,150 is at $ 8,220. The next key resistance is near the $ 8,340 level, above which the price could test the $ 8,500 level. The 1.236 Fib extension level of the recent decline from the $ 8,338 high to $ 7,631 low is also near the $ 8,505 level.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is currently consolidating above the $ 8,000 level. In the short term, there could be another drop towards $ 7,850 or even $ 7,630. However, there are many support on the downside near the $ 7,580 and $ 7,600 levels. Besides, this week’s followed important bullish trend line is intact with support at $ 7,580. As long as the price is above the trend line support, it is likely to break $ 8,150 and $ 8,340.

Technical indicators:

Hourly MACD – The MACD is likely to move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently flat above the 50 level.

Major Support Levels – $ 7,850 followed by $ 7,630.

Major Resistance Levels – $ 8,100, $ 8,150 and $ 8,340.

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Analysis – NewsBTC

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