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Bitcoin Price Analysis: BTC Remains in Uptrend Above $8,400

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  • Bitcoin price started a strong downside correction from the $10,069 high against the US Dollar.
  • It is currently consolidating above the $8,400 and $8,250 support levels.
  • There is a crucial bullish trend line forming with support at $8,410 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could start a fresh rally if there is a clear break above $9,120 and $9,180.

Bitcoin price is currently consolidating losses above the $8,400 support against the US Dollar. BTC is likely to accelerate higher as long as there is no close below $8,250.

Bitcoin Price Analysis

Earlier this month, bitcoin price topped just above the $10,000 level against the US Dollar. BTC traded as high as $10,069 and started a strong downside correction below the $9,565 support zone.

There was a sharp decline below the $9,080 support zone and the 55 simple moving average (4-hours). The price even broke the $8,400 support zone and tested the next major support near the $8,250 level.

A swing low is formed due to a spike at $8,114 and the price is currently recovering. It broke the 23.6% Fib retracement level of the key decline from the $10,069 swing high to $8,114 low.

On the upside, bitcoin price seems to be facing a strong resistance near the $9,080 and $9,120 levels. The 55 simple moving average (4-hours) is also near the $9,120 level to act as a key hurdle. More importantly, the 50% Fib retracement level of the key decline from the $10,069 swing high to $8,114 low is at $9,092.

Therefore, an upside break above the $9,080 and $9,120 resistance levels is needed for a fresh increase in the near term. In the mentioned case, the price could surge above $9,200 and even test the $9,500 and $9,600 levels.

Conversely, the price could restart a downward move below $8,600. On the downside, the first major support is near the $8,400 level. There is also a crucial bullish trend line forming with support at $8,410 on the 4-hours chart of the BTC/USD pair.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading above the main $8,400 and $8,250 support levels. As long as there is no close below $8,250, the price is likely to rise further above the $9,120 resistance level.

Technical indicators

4 hours MACD – The MACD is now gaining pace in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is currently close to the 50 level.

Key Support Levels – $8,400 and $8,250.

Key Resistance Levels – $9,080, $9,120 and $9,180.

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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