- Bitcoin price started a downside correction after it almost touched $9,200 against the US Dollar.
- The price declined below $9,000, but the $8,460 area acted as a strong support.
- There is a major bullish trend line forming with support near $8,560 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair is likely to climb higher again unless it breaks the $8,560 and $8,460 support levels.
Bitcoin price is trading nicely above key uptrend supports against the US Dollar. BTC is likely to accelerate above $9,000 as long as it is above the $8,460 support.
Bitcoin Price Analysis
In the past few days, bitcoin price remained in a strong uptrend above $8,000 and $8,500 against the US Dollar. BTC even surpassed the $9,000 level and traded to a new 2020 high at $9,195.
Recently, there was a downside correction below the $9,000 level. The price even traded below the $8,850 support area. However, the decline was protected by the $8,500 and $8,460 support levels.
Besides, the 55 simple moving average (4-hours) also prevented a close below the $8,500 level. A low is formed near $8,466 and the price is currently recovering. It broke the 23.6% Fib retracement level of the recent correction from the $9,195 high to $8,466 low.
On the upside, the first key resistance is near the $8,810 level. It coincides with the 50% Fib retracement level of the recent correction from the $9,195 high to $8,466 low.
If there is a clear break above the $8,800 and $8,810 levels, bitcoin price is likely to continue higher above $9,000 and $9,050. The next major resistance is near the $9,195 and $9,200 levels, followed by $9,280.
If there is a successful close above $9,300, the price could continue to rise in the near term. On the downside, there many supports for bitcoin near the $8,560 and $8,500 levels.
Besides, there is a major bullish trend line forming with support near $8,560 on the 4-hours chart of the BTC/USD pair. If the price fails to stay above the trend line support, $8,560 and $8,460, there is a risk of a larger decline in the coming sessions.
Looking at the chart, bitcoin price is clearly trading above key uptrend supports near $8,560 and $8,460. As long as there is no close below $8,460, the price is likely to rise steadily above $9,000 and $9,050.
4 hour MACD – The MACD is currently moving into the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI is currently just above the 50 level.
Key Support Levels – $8,560 and $8,460.
Key Resistance Levels – $8,810, $9,000 and $9,200.