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Bitcoin Price Analysis: BTC Near Make-or-Break Levels

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  • Bitcoin price is consolidating above the $8,000 and $7,800 support levels against the US Dollar.
  • The price is facing a strong resistance on the upside near the $8,350 and $8,400 levels.
  • There are two key bearish trend lines in place with resistance near $8,350 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could either rally above the $8,350 resistance or it might decline further below $7,800.

Bitcoin price is facing a strong resistance near $8,350 and $8,400 against the US Dollar. BTC must surpass $8,400 and gain strength above $8,500 for a fresh increase.

Bitcoin Price Analysis

In the past few days, bitcoin price traded in a broad range below the $8,500 resistance against the US Dollar. Moreover, the BTC/USD pair remained well below $8,500 and the 55 simple moving average (4-hours). The last swing low was formed near the $7,768 level before the price recovered higher. It broke the $8,000 and $8,150 resistance levels. Moreover, there was a break above $8,300 and the 55 simple moving average (4-hours).

However, the price failed to gain strength above $8,325 and topped near the $8,334 level. It is currently correcting lower and is trading near the $8,140 level. An immediate support on the downside is near the $8,050 level. It coincides with the 50% Fib retracement level of the recent rise from the $7,768 low to $8,334 high. The main support on the downside is near the $7,980 level.

Moreover, the 61.8% Fib retracement level of the recent rise from the $7,768 low to $8,334 high is near the $7,980 level to provide support. If there is a downside break below the $7,980 support, bitcoin price could revisit the $7,775 zone. Any further losses might call for a sharp decline below the $7,700 area. On the upside, there are many hurdles forming near the $8,350 and $8,400 levels.

More importantly, there are two key bearish trend lines in place with resistance near $8,350 on the 4-hours chart of the BTC/USD pair. Therefore, a clear break above both trend lines and $8,400 is must for a decent recovery above the $8,500 level. The next key resistance above $8,500 is near the $9,000 level.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is facing a couple of important hurdles near the $8,350 and $8,400 levels. Therefore, the price could either rally above the $8,350 resistance or it might decline further below $7,800.

Technical indicators

4 hour MACD – The MACD is losing momentum in the bullish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently near the 50 level, with a bearish angle.

Key Support Levels – $8,000 and $7,700.

Key Resistance Levels – $8,350, $8,400 and $8,500.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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