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Bitcoin price is confined in a range below the key $8,200 resistance against the US Dollar, suggesting a short term accumulation phase. BTC could either rally above $8,200 or it might dip to $7,700 before a decent bounce.
- Bitcoin is moving in a range between $8,200 and $8,000 against the US Dollar.
- The bulls are likely aiming an upside break above the $8,200 resistance area.
- There is a key bearish trend line forming with resistance near $8,170 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally if there is a clear break above $8,200 and $8,250 in the next 2-3 sessions.
Bitcoin Eyes Upside Break
Despite all hurdles, bitcoin bullish were able to push the price above the $8,000 level against the US Dollar. BTC price even settled above the 100 hourly simple moving average, but it is struggling to clear the $8,200 resistance.
Looking at the chart below, the price climbed nicely from the $7,668 swing low. It broke the $8,100 resistance and the 100 hourly simple moving average. A high was formed near $8,319 before the price started consolidating in a range.
It seems like bitcoin is in a short term accumulation phase and consolidating below the key $8,200 and $8,250 resistance levels. Besides, there is a key bearish trend line forming with resistance near $8,170 on the same chart of the BTC/USD pair.
On the upside, a clear break above the $8,200 resistance could trigger a nice rally. The next key hurdle is near the $8,460, above which the bulls are likely to aim a break of $8,500.
Chances of Short Term Pullbacks In BTC
Conversely, there are chances of a short term downside break below the range support at $8,000. Besides, the 100 hourly simple moving average is near $8,000 and the 50% Fib retracement level of the upward move from the $7,668 low to $8,319 high.
If there is a downside break below $8,000, the price may perhaps dip towards the $7,700 support area. An intermediate support is near $7,820 and the 76.4% Fib retracement level of the upward move from the $7,668 low to $8,319 high.
The main support for bitcoin is near the $7,600 area. The main support for bitcoin is near the $7,600 area. If there is a daily close below $7,600 and $7,500, it could negate the current bullish bias.
Technical indicators:
Hourly MACD – The MACD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining below the 50 level.
Major Support Levels – $8,000 followed by $7,820.
Major Resistance Levels – $8,170, $8,200 and $8,250.
