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Bitcoin is up 2% and it broke the $7,600 resistance area against the US Dollar. However, BTC price is likely to face a strong resistance near $8,000 in the near term.
- Bitcoin is showing signs of exhaustion above $7,500 and $7,600 against the US Dollar.
- The bears are likely to put a strong fight near the $8,000 resistance area.
- There is a key bullish trend line forming with support near $7,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could spike towards the $8,000 resistance, where the bulls are likely to face many hurdles.
Bitcoin Approaching Key Resistance
In the past few sessions, bitcoin remained well bid above the $7,400 and $7,420 levels against the US Dollar. BTC price corrected a few points below the $7,555 support, but dips were limited.
A low was formed near $7,484 and the price started a fresh increase. It climbed above the $7,555 level and the bulls were able to push the price above the key $7,600 resistance.
A new weekly high is formed near $7,792 and the price is now trading well above the 100 hourly simple moving average. Bitcoin is currently consolidating gains above $7,700. It tested the 23.6% Fib retracement level of the recent rise from the $7,484 low to $7,792 high.
On the downside, an initial support is seen near the $7,635 level. It is close to the 50% Fib retracement level of the recent rise from the $7,484 low to $7,792 high. More importantly, there is a key bullish trend line forming with support near $7,600 on the hourly chart of the BTC/USD pair.
It seems like the pair might correct a few points towards the previous resistance (now support) at $7,600. As long as the price is above the $7,600 support, it could grind higher towards the main $8,000 resistance area.
$8,000 as a Key Hurdle
As discussed in one of the previous analyses using the daily chart of bitcoin, the $8,000 level is a major hurdle for the bulls in the near term.
There are high chances of a strong bearish reaction near the $8,000 level. If the bulls remain in action and push the price above $8,000, the price could continue higher towards $8,800 or $9,000.
Technical indicators:
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level.
Major Support Levels – $7,600 followed by $7,500.
Major Resistance Levels – $7,800, $8,000 and $8,080.
