BUY BITCOIN
Key Points
- Bitcoin price found support above $8,000 and recovered nicely against the US Dollar.
- There is a breakout pattern forming with resistance near $8,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair has to move above the $8,500 resistance the 100 hourly simple moving average to gain momentum.
Bitcoin price is struggling to break the $8,500 resistance against the US Dollar. BTC/USD may trade in a range above $8,200 before the next move.
Bitcoin Price Analysis
After forming a base around the $8,080, bitcoin price started an upside recovery against the US Dollar. The BTC/USD pair managed to move above the $8,200 resistance level to post intraday gains. It also broke the 23.6% Fib retracement level of the decline from the $8,854 high to $8,080 low. There were a few positive signs above the $8,200 level, but the price struggled to break a major barrier at $8,500.
The 100 hourly simple moving average at $8,500 prevented gains. There were two attempts by buyers to break the stated $8,500 resistance, but they failed. Moreover, the 50% Fib retracement level of the decline from the $8,854 high to $8,080 low also acted as a resistance. It seems like there is a breakout pattern forming with resistance near $8,500 on the hourly chart of the BTC/USD pair. The pair is currently declining and testing the triangle support at $8,200. Should it break the triangle support, there could be a downside move towards the $8,080 low.
Looking at the chart, the price is clearly struggling near $8,500. A proper break above this is needed for a push towards the $8,750 level. On the flip side, the $8,080 low is a decent support followed by the $8,000 handle.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI has moved back below the 50 level.
Major Support Level – $8,080
Major Resistance Level – $8,500
