- Bitcoin price rallied recently above the $8,400 and $8,500 resistance levels against the US Dollar.
- The price traded to a new yearly high at $8,900 and settled above the 55 simple moving average (4-hours).
- There is a crucial bullish trend line forming with support near $8,420 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair remains well supported and dips towards $8,420 and $8,315 might prevent buy opportunity.
Bitcoin price is gaining bullish momentum and it recently jumped towards $9,000 against the US Dollar. BTC is correcting lower, but it is likely to find support near $8,420 or $8,315.
Bitcoin Price Analysis
In the past few days, bitcoin price started a steady rise above the $8,000 resistance against the US Dollar. BTC broke a few key resistances near $8,420 and $8,500 to continue higher.
Moreover, there was a close above the $8,420 level and the 55 simple moving average (4-hours). Finally, the price surged towards the $9,000 level and a new yearly high was formed near $8,900.
The price is currently correcting lower below the $8,800 level. There was a break below the 23.6% Fib retracement level of the recent rally from the $7,947 low to $8,900 high.
On the downside, there many supports for bitcoin, starting with $8,420. Besides, the 50% Fib retracement level of the recent rally from the $7,947 low to $8,900 high is also near the $8,420 level to provide support.
More importantly, there is a crucial bullish trend line forming with support near $8,420 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the trend line, the price could test the $8,310 support.
Any further losses may perhaps lead the price towards the $8,100 support area and the 55 simple moving average (4-hours). On the upside, there are hurdles near the $8,800 and $8,900 levels.
The main hurdle is near the $9,000 level, above which the price is likely to climb towards $9,200 and $9,250. Any further gains might push BTC towards the $10,000 level in the near term.
Looking at the chart, bitcoin price is showing a lot of positive signs above the $8,420 and $8,310 levels. Therefore, there are chances of more upsides above $8,900 unless the bears push the price below $8,420 and $8,310.
Technical indicators
4 hour MACD – The MACD is currently reducing its bullish slope.
4 hour RSI (Relative Strength Index) – The RSI is currently correcting lower from the overbought zone.
Key Support Levels – $8,420 and $8,310.
Key Resistance Levels – $8,800, $9,000 and $9,200.