Bitcoin (BTC) Price Smashes Resistance: Primed For More Gains
- Bitcoin price broke to the upside and cleared the $7,950 and $8,000 barriers against the US Dollar.
- The price even broke the $8,200 resistance area and it is currently correcting lower.
- There is another major breakout pattern forming with resistance near $8,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently trading with a positive bias above the $8,100 and $8,000 support levels.
Bitcoin price started a strong rise after it broke the $8,000 barrier against the US Dollar. BTC is back in a positive zone and it might continue to rise towards the $8,400 level.
Bitcoin Price Analysis
Recently, bitcoin price formed a support base above the $7,700 level against the US Dollar. The BTC/USD pair started a steady rise and broke the $7,800 and $7,850 resistance levels. As a result, the bulls gained strength above the $7,900 level and the 100 hourly simple moving average. It opened the doors for more gains above the main $7,950 and $8,000 resistance levels.
The price even surpassed yesterday’s breakout pattern with resistance near $7,950 on the hourly chart. The bulls managed to push the price to a new weekly high above the $8,100 level. Finally, there was a break above the $8,200 level and a new swing high was formed near $8,284.
Recently, bitcoin price started a downside correction below $8,200. It broke the 23.6% Fib retracement level of the recent wave from the $7,902 swing low to $8,284 high. On the downside, there are many supports near the $8,100 and $8,080 levels. Moreover, there is another major breakout pattern forming with resistance near $8,200 on the hourly chart of the BTC/USD pair.
The 50% Fib retracement level of the recent wave from the $7,902 swing low to $8,284 high is also near the $8,090 level to act as a support. It seems like there could be a downside spike towards the $8,080 or $8,050 support levels before the price starts a fresh increase. On the upside, a break above the $8,200 level could open the doors for more gains in the near term.
Looking at the chart, bitcoin price is showing positive signs above the $8,000 and $8,100 support levels. In the short term, there could be a few swing moves, but the price is likely to hold the $8,000 support. As long as BTC is above $8,000, it could continue to grind higher.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level and is correcting lower.
Major Support Levels – $8,100 followed by $8,000.
Major Resistance Levels – $8,200, $8,300 and $8,380.
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via https://www.ohnocrypto.com/ Aayush Jindal, Khareem Sudlow