Bitcoin Just Saw A Key Technical Breakout: Big Reaction From Bulls Imminent

Aayush Jindal

1 year ago

2 mins read

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Bitcoin reversed after a sharp dip towards the $8,400 support area against the US Dollar. BTC price is now signaling more upsides above $8,800 and $9,000 in the coming sessions.

Bitcoin price bounced sharply and formed a bullish engulfing pattern above $8,550 against the US Dollar.
The bulls are likely to take control once the price surpasses the $8,800 resistance area.
There was a break above a key declining channel with resistance near $8,665 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might dip a few points, but a break above the $8,800 resistance area is very likely.

Bitcoin Forming Bullish Candlestick Pattern

Recently, there was a sharp dip in bitcoin from the $8,750 area against the US Dollar. BTC price spiked below a couple of important supports, but it bounced back above $8,500.

As a result, there was a strong bullish engulfing pattern formed on the hourly chart and the price settled above the $8,500 support area. The recent increase was technically significant, suggesting the bulls rejected the $8,500 support.

Moreover, there was a break above a key declining channel with resistance near $8,665 on the hourly chart of the BTC/USD pair. Bitcoin price even climbed above the $8,700 level.

It is currently testing the 100 hourly simple moving average and struggling to gain strength above $8,780-$8,800. If there is a clear break above the $8,800 resistance and the 100 hourly SMA, bitcoin is likely to accelerate higher.

In the mentioned bullish case, an initial target could be $9,000. A successful follow through above the $9,000 resistance might start a strong rise towards the $9,200 and $9,300 resistance levels.

Any further gains may perhaps start a larger upward move above towards the $10,000 and $11,000 levels in the coming days.

Key Supports For BTC

If BTC fails again to clear the $8,800 resistance and the 100 hourly SMA, it could correct a few points. An initial support is near the $8,670 level or the channel resistance area.

The first key support on the downside is near the $8,560 level, below which bitcoin is likely to retest the main $8,500 support area. Only a daily close below $8,500 might negate the current bullish view.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level, with positive signs.

Major Support Levels – $8,560 followed by $8,500.

Major Resistance Levels – $8,800, $8,810 and $9,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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