Bitcoin Breaking This Single Level Will Spark a Pre-Halving Rally

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is showing bullish signs above the $7,700 level against the US Dollar. BTC could start a strong pre-halving rally if it breaks the $8,000 resistance and the 100-day simple moving average.

Bitcoin is following a positive path above the $7,500 pivot level against the US Dollar.
The price is now facing a major hurdle near $8,000 and the 100-day simple moving average.
There is a key bullish trend line forming with support at $7,200 on the daily chart of the BTC/USD pair (data feed from Kraken).
The pair could either surge above the $8,000 resistance or retest the bullish trend line.

Bitcoin Price is Approaching Key Hurdle

After forming a major swing low, bitcoin started a steady rise above the $6,500 and $7,500 resistance levels against the US Dollar. BTC price even settled above the $7,500 pivot zone to move into a bullish zone.

During the rise, it surpassed the 50% Fib retracement level of the main drop from the $10,497 high to $3,930 swing low. The current price action is positive above $7,500, but the bulls are clearly facing a major hurdle near the $8,000 level.

The 100-day simple moving average is positioned near the $8,000 level to prevent an upside break. The 61.8% Fib retracement level of the main drop from the $10,497 high to $3,930 swing low is also close to $7,980 level.

More importantly, there is a connecting resistance trend line forming at $8,000 on the daily chart of the BTC/USD pair. Therefore, a successful break above the $8,000 level and the 100-day simple moving average could open the doors for a pre-halving rally in the coming days.

The next key resistance is near the $8,280 level, above which bitcoin bulls are likely to aim a test of the $9,000 and $9,200 levels in the medium term.

Bearish Rejection

If bitcoin price fails to surpass the $8,000 resistance and the 100-day SMA, there might be a bearish reaction. An initial support is near the $7,500 level.

The main support is near the $7,200 level and a key bullish trend line forming with support at $7,200 on the same chart. A bearish break below the $7,200 level could spark a fresh bearish wave. In the mentioned bearish case, the price could dive towards the $6,000 level.

Technical indicators:

Daily MACD – The MACD is currently gaining momentum in the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 55 level.

Major Support Levels – $7,500 followed by $7,200.

Major Resistance Levels – $8,000, $8,280 and $9,000.

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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