Do or Die For Bitcoin Bulls: Here’s What Could Trigger Short Term Rebound

Aayush Jindal

5 years ago

2 mins read

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Bitcoin is facing a crucial resistance near $8,200 against the US Dollar (as discussed yesterday). BTC price could trade in a range for a few sessions before the next move.

Bitcoin is trading in a bearish zone below the $8,200 resistance area against the US Dollar.
The bulls are putting up a fight to defend the $7,800 and $7,700 support levels.
There is a key contracting triangle forming with resistance near $7,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could make another attempt to surpass the main $8,200 resistance area in the near term.

Bitcoin is Facing Hurdles

Yesterday, we discussed the chances of a short term recovery in bitcoin towards the $8,200 resistance area against the US Dollar. BTC price did start an upward move above the $8,000 and $8,100 levels.

However, the price failed to gain strength above the $8,180 and $8,200 resistance levels. A swing high was formed near $8,165 and the price remained well below the 100 hourly simple moving average.

It trimmed gains and tested the $7,700 support area. At the moment, bitcoin price seems to be trading in a contracting range below $8,000. The last swing high was near $8,034 before the price declined below the 23.6% Fib retracement level of the recent leg from the $7,728 low to $8,034 high.

On the downside, an initial support is near the $7,880 level. It is close to the 50% Fib retracement level of the recent leg from the $7,728 low to $8,034 high.

More importantly, there is a key contracting triangle forming with resistance near $7,950 on the hourly chart of the BTC/USD pair. If there is an upside break above the $7,950 and $8,000 levels, the price could make another attempt to surpass the main $8,200 resistance area in the near term.

If the bulls succeed in gaining strength above the $8,200 resistance area, the price may perhaps start a short term recovery towards the $8,500 and $8,600 levels.

Fresh Decline?

If bitcoin fails to continue above the $8,000 pivot level or the $8,200 resistance zone, there is a risk of a fresh decline in the coming sessions.

An initial support is near the $7,640 level, below which the price is likely to dive towards the main $7,500 support area (as discussed 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 currently flat near the 45 level.

Major Support Levels – $7,800 followed by $7,640.

Major Resistance Levels – $8,000, $8,200 and $8,500.

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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