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Bitcoin Price Analysis: BTC Rally Could Extend Above $8.8K

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  • Bitcoin price rallied significantly and traded above the main $8,000 resistance against the US Dollar.
  • The price traded as high as $8,345 and recently corrected below the $8,000 support.
  • There is a crucial bullish trend line forming with support at $7,620 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to climb further above $8,400 and $8,500 as long as it is trading above $7,500.

Bitcoin price surged higher above $7,500 and $8,000 against the US Dollar. BTC is currently in a solid uptrend and it may perhaps extends gains towards $8,800 or even $9,000.

Bitcoin Price Analysis

This week, bitcoin price started a parabolic rally above the $7,000 and $7,200 barriers against the US Dollar. There was a proper close above $7,500 and the 55 simple moving average (4-hours). The BTC/USD pair climbed above the $7,500 and $8,000 resistance levels to trade to a new 10-month high. It even traded above $8,300 and formed a high at $8,345. Recently, it started a downside correction below the $8,100 level. The price traded below the 23.6% Fib retracement level of the last wave from the $6,865 low to $8,345 high.

However, the $7,600 support zone acted as a strong barrier for sellers. It represents the 50% Fib retracement level of the last wave from the $6,865 low to $8,345 high. Besides, there is a crucial bullish trend line forming with support at $7,620 on the 4-hours chart of the BTC/USD pair. The pair is currently moving higher towards the $8,080 and $8,120 resistance levels. The main hurdle is near $8,200, above which the price is likely to retest the $8,345 high.

If there is an upside break above the $8,345 high, the price could surge above the $8,400 and $8,500 levels. The next key resistance is near the $8,800 zone, followed by the $9,000 pivot area. Conversely, if there is a downside break below the trend line and $7,600, the last defense could be near $7,500. Below $7,500, the price could extend the correction towards the $7,200 support. It represents the 76.4% Fib retracement level of the last wave from the $6,865 low to $8,345 high.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is currently in a strong uptrend above $7,700 and $7,600. Therefore, there are high chances of more gains above the $8,345 swing high in the coming days. The next key targets for the bulls could be $8,500, $8,800 and $9,000.

Technical indicators

4 hour MACD – The MACD is gaining strength in the bullish zone.

4 hour RSI (Relative Strength Index) – The RSI is currently well above the 55 and 60 levels.

Key Support Levels – $7,600 and $7,500.

Key Resistance Levels – $8,350, $8,500 and $8,800.

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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