Bitcoin rallied more than 5% and broke key hurdles near $8,250 and $8,500 against the US Dollar. BTC price might continue to rise towards $8,780 and $8,800 in the near term.
- Bitcoin price is gaining bullish momentum above the $8,400 resistance against the US Dollar.
- There was a crucial upside break above the range resistance near $8,200.
- Yesterday’s highlighted important bearish trend line was breached with resistance near $8,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct in the short term, but dips remain supported near $8,460 and $8,330.
Bitcoin Rallies 5%, More Upsides Likely
Yesterday, we discussed the chances of an upside break in bitcoin above the $8,200 resistance against the US Dollar. BTC price did follow a positive bias and was able to break the key range resistance near $8,200.
Moreover, the bulls pushed the price above yesterday’s important bearish trend line with resistance near $8,150 on the hourly chart of the BTC/USD pair. It opened the doors for more gains and the price rallied above the $8,400 and $8,500 resistance levels.
Finally, bitcoin traded to a new 2020 high at $8,627 and it is currently correcting lower. However, there are many supports on the downside, starting with $8,460 and up to $8,200.
On the upside, the $8,680 and $8,700 levels are initial hurdles for the bulls. If they are able to surpass the $8,700 level, the next key levels to watch are $8,800 and $8,950. The main target above $8,700 may perhaps be $9,000 in the coming sessions.
Pullbacks In BTC Remain Supported
In the short term, there could be a downside correction below $8,500. Ab initial support is near $8,460 and the 23.6% Fib retracement level of the recent rally from the $8,038 low to $8,627 high.
The next support is near the $8,300 area since it is close to the 50% Fib retracement level of the recent rally from the $8,038 low to $8,627 high. Any further losses could lead the price towards the main support at $8,200.
The recent breakout zone at $8,200 is likely to act as a strong support if bitcoin starts a downside correction from the current levels. The overall price action is positive, suggesting more upsides towards $8,800 and $9,000 in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 70 level, with signs of a correction.
Major Support Levels – $8,460 followed by $8,330.
Major Resistance Levels – $8,680, $8,800 and $9,000.
