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- Bitcoin price rallied recently above the $8,300 and $8,650 resistance levels against the US Dollar.
- The price traded to a new 2019 high at $8,952 and it is currently consolidating gains.
- There is a key bullish flag pattern forming with resistance near $8,860 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase once it clears the $8,860 and $8,900 resistance levels.
Bitcoin price started consolidating gains after trading towards $9,000 against the US Dollar. BTC could correct in the short term, but it is likely to climb higher further above $9,000.
Bitcoin Price Analysis
Yesterday, we saw a significant upward move in bitcoin price above the $8,300 and $8,500 resistances against the US Dollar. The BTC/USD pair even broke the $8,700 resistance and settled above the 100 hourly simple moving average. The bulls took control and the price traded close to the $9,000 level. A new 2019 high was formed near $8,952 and the price is currently consolidating gains. It corrected below the $8,900 and $8,800 levels.
There was a test of the 23.6% Fib retracement level of the recent rally from the $7,900 low to $8,952 high. More importantly, there is a key bullish flag pattern forming with resistance near $8,860 on the hourly chart of the BTC/USD pair. Therefore, if there is an upside break above $8,860 and $8,900, the price is likely to resume its upward move. An immediate resistances are $8,950 and $9,000. Above $9,000, the bulls could aim $10K in the coming days. An intermediate resistance is near the $9,280 level.
Conversely, if there is a downside break below the $8,620 level, the price might trade towards the $8,450 or $8,425 supports. The 50% Fib retracement level of the recent rally from the $7,900 low to $8,952 high is also near the $8,426 level. Therefore, dips from the current levels are likely to find support near $8,450.
Looking at the chart, bitcoin price seems to consolidating recent gains above $7,600. As long as the price is above $7,600, it is likely to resume its rally above $8,860 and $8,950. The main targets could be $9,120 and $9,280. On the other hand, if the price starts a downside correction, the $8,450 support area could prevent losses. Below $8,425, the main support is near the $8,300 level and the 100 hourly simple moving average.
Technical indicators:
Hourly MACD – The MACD is likely to move back in the bullish zone once the current correction is complete.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is slowly correcting lower towards the 55 and 50 levels.
Major Support Levels – $8,600 followed by $8,450.
Major Resistance Levels – $8,860, $8,950 and $9,000.
