Key Points
- Bitcoin price gained momentum and broke a key resistance at $8,000 against the US Dollar.
- There is a key connecting bullish trend line in place with support at $7,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might correct a few points, but it remains in an uptrend towards $8,500.
Bitcoin price is climbing higher above $7,800 against the US Dollar. BTC/USD broke the $8,000 resistance and it looks set for more upsides in the near term.
Bitcoin Price Analysis
Yesterday, we discussed that Bitcoin price could climb above the $8,000 resistance against the US Dollar. The BTC/USD pair did gain momentum above the $7,800 resistance and traded above the $8,000 resistance. A high was formed at $8,028 and the price is currently consolidating gains. An initial support on the downside is near the 23.6% Fib retracement level of the last wave from the $7,327 low to $8,027 high.
More importantly, there is a key connecting bullish trend line in place with support at $7,850 on the hourly chart of the BTC/USD pair. Should there be a break below the trend line support, the price may trade towards the $7,770 support. The 50% Fib retracement level of the last wave from the $7,327 low to $8,027 high is also positioned near the $7,680 level. Therefore, if the price corrects lower, it is likely to find many supports like $7,850, $7,800, $7,700 and $7,680. Below this, the most important support is at $7,580 (the previous resistance).
Looking at the chart, the price is showing many bullish signs above $7,850. It is likely to accelerate gains above the $8,000 level. The next resistances are near the $8,200 and $8,500 levels.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed heavily in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is near the overbought levels with hardly any sign of a downside move.
Major Support Level – $7,850
Major Resistance Level – $8,500
