Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin is likely forming a short term bottom near $8,400 against the US Dollar. However, BTC price must climb above the 100 hourly SMA and $8,800 to start a fresh increase.
- Bitcoin is currently consolidating above the $8,400 and $8,500 support levels against the US Dollar.
- The bulls need to gain control above $8,700 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $8,575 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong increase if it settles above $8,700 and $8,800.
Bitcoin Reaching Key Resistance
This past week, we saw a steady decline below the $9,000 support in bitcoin against the US Dollar. BTC price made a couple of attempts to bounce back, but it failed and settled below the 100 hourly simple moving average.
On the downside, it seems like the price is finding a significant buying interest near the $9,500 and $9,400 levels. The recent low was formed near $8,403 and the price is currently correcting higher.
It is trading above the $8,450 and $8,500 levels. More importantly, there was a break above a key bearish trend line with resistance near $8,575 on the hourly chart of the BTC/USD pair. It has opened the doors for more gains above the $8,600 level.
The pair is now trading near the 50% Fib retracement level of the recent decline from the $8,821 high to $8,403 low. On the upside, an initial resistance is seen near the $8,660 level and the 100 hourly simple moving average.
The 61.8% Fib retracement level of the recent decline from the $8,821 high to $8,403 low is also near the $8,660 level to prevent gains. If bitcoin price climbs above the $8,700 level and the 100 hourly SMA, there are chances of a decent upward move.
The next key resistance is near the $8,800 area, above which the bulls are likely to take control. In the stated bullish scenario, the price is likely to recover above $9,000 or even $9,200 in the coming sessions.
Downside Break?
If bitcoin fails to climb above the $8,700 level or the 100 hourly SMA, there is a risk of another bearish reaction. On the downside, there are two key supports – $8,500 and $8,400.
A downside break below the $8,403 low may perhaps lead the price towards the next set of important supports near $8,200 and $8,000 (as discussed in one of the analyses using the daily chart).
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is back above the 50 level.
Major Support Levels – $8,500 followed by $8,400.
Major Resistance Levels – $8,700, $8,800 and $9,000.
