- Bitcoin price is currently correcting higher and it broke the key $8,200 resistance against the US Dollar.
- The price is now consolidating gains below the $8,300 and $8,350 resistance levels.
- There is a short term breakout or bullish continuation pattern forming with resistance near $8,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price could struggle to continue higher and it might correct towards the $8,100 support.
Bitcoin price is rebounding nicely above $8,100 and $8,200 against the US Dollar. However, it is still early to call the current move as a trend change in BTC.
Bitcoin Price Analysis
This past week, we saw mostly bearish moves in bitcoin below the $8,200 support area against the US Dollar. BTC price even settled below $8,000 and the 100 hourly simple moving average. However, the $7,800 area acted as a strong support. As a result, BTC started a decent recovery above the $8,000 resistance area and the 100 hourly SMA. Moreover, there was a break above a contracting triangle with resistance near $8,000 on the hourly chart.
More importantly, the price surpassed the main $8,200 resistance area (as discussed in the weekly forecast). Finally, the price traded above the $8,250 level and tested the $8,300 zone. A high was formed near $8,305 and the price is currently consolidating gains. An immediate support is near the $8,200 level or the 23.6% Fib retracement level of the recent recovery from the $7,884 low to $8,305 high.
Additionally, there is a short term breakout or bullish continuation pattern forming with resistance near $8,250 on the same chart. If there is an upside break above $8,250, bitcoin price could continue to rise towards the $8,300 and $8,350 resistance levels. The next key resistance on the upside is near the $8,400 level.
Conversely, if there is a downside break below the $8,200 support, the price could start an extended downside correction. The next key support is near the $8,100 area. Moreover, the 50% Fib retracement level of the recent recovery from the $7,884 low to $8,305 high is also near the $8,095 level to provide support. If there are more downsides, the price could test $8,000 and the 100 hourly SMA.
Looking at the chart, bitcoin seems to be recovering nicely above $8,200. However, the current price action below $8,300 still suggests signs of caution. Only a close above $8,400 may perhaps call for a strong rise towards $9,000 and $9,200.
Technical indicators:
Hourly MACD – The MACD is losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower towards the 60 level.
Major Support Levels – $8,200 followed by $8,100.
Major Resistance Levels – $8,250, $8,300 and $8,400.
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