Key Points
- Bitcoin price is gaining pace and will most likely break the $7500 resistance against the US Dollar.
- There is a major bullish trend line forming with support at $7300 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
- The pair is now well supported above the $7300 and $7000 support levels for more gains.
Bitcoin price remains well in the bullish zone above $7000 against the US Dollar. BTC/USD might break $7500 soon and could even test $8000.
Bitcoin Price Remains Buy on Dips
There were monster gains in Bitcoin price as it moved above $6500 and $7000 against the US Dollar. The price gained a lot of pace and buyers succeeded in even breaking the $7200 resistance. A recent high was formed near $7477. Before $7477, there was a swing high formed at $7438 for a downside correction. Sellers pushed the price back towards $7000 and a low was formed at $6945.
Later, the price recovered sharply and moved back above $7200. There was even a close above the 76.4% Fib retracement level of the last drop from the $7438 high to $6945 low. It opened the doors for more gains above $7438. It seems like price would soon break $7500 and test the 1.236 Fib extension of the last drop from the $7438 high to $6945 low at $7555. Above the $7555 level, the next target could be the 1.618 Fib extension of the last drop from the $7438 high to $6945 low around $7700.
If buyers remain in control, there is even a chance of a test of $8000 in the coming days. On the downside, there is a major bullish trend line forming with support at $7300 on the 4-hours chart of BTC/USD, which is also a buy zone.
Looking at the technical indicators:
4-hours MACD – The MACD is strongly placed in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently near the 70 level.
Major Support Level – $7300
Major Resistance Level – $7550
Charts courtesy – SimpleFX