Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
- Bitcoin price is recovering and it recently broke the main $7,375 and $7,400 resistances against the US Dollar.
- The price is likely to start a strong rise to $8,000 once it clears the $7,700 resistance.
- There is a short term contracting triangle forming with resistance near $7,540 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The recent rise was triggered after the price surpassed yesterday’s bullish flag resistance at $7,100.
Bitcoin price is slowly moving into a positive zone against the US Dollar. BTC seems to be aiming a test of the $8,000 resistance level in the coming days.
Bitcoin Price Analysis
Yesterday, we saw a nice recovery wave in bitcoin above the $7,200 resistance against the US Dollar. However, BTC price struggled to climb above the $7,375 and $7,400 resistance levels.
Later, there was a minor downside correction, but the price remains well bid above the $7,000 level. As a result, there was a fresh increase above the $7,200 resistance.
Moreover, the price surpassed yesterday’s bullish flag resistance at $7,100 on the hourly chart. It opened the doors for an upside break above the key $7,375 and $7,400 resistance levels.
Bitcoin price even rallied above the $7,500 resistance and traded close to the next key resistance near $7,700 (as pointed out in the weekly forecast). A high was formed near $7,676 and the price is currently correcting lower.
It broke the $7,600 level, but holding the 23.6% Fib retracement level of the recent upward move from the $6,857 low to $7,676 high. Additionally, there is a short term contracting triangle forming with resistance near $7,540 on the same chart.
Therefore, there are two possible scenarios – first, the price resumes its rise above the $7,600 and $7,700 resistance level. In the mentioned case, the bulls are likely to aim the $8,000 resistance.
Conversely, the price could correct further lower below the $7,450 support. The next support is near the $7,340 level. The main support is near the $7,260 level since it is the 50% Fib retracement level of the recent upward move from the $6,857 low to $7,676 high.
Looking at the chart, bitcoin price is showing positive signs above the $7,400 level. In the short term, there could be a downside correction towards $7,340 or $7,260, but dips are likely to remain well bid. If not, the price may possibly revisit the $7,000 support area.
Technical indicators:
Hourly MACD – The MACD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower towards the 50 level.
Major Support Levels – $7,340 followed by $7,260.
Major Resistance Levels – $7,540, $7,600 and $7,700.
