- Bitcoin price started a decent upward move above the $8,500 level against the US Dollar.
- The price is trading with a positive tone above $8,600 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support at $8,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently consolidating and it could soon climb above the $8,800 resistance.
Bitcoin price is currently trading in a range above $8,600 against the US Dollar. BTC could start a sharp upward move above the $8,800 and $8,850 resistance levels.
Bitcoin Price Analysis
Recently, bitcoin price slowly climbed above the $8,400 and $8,500 levels against the US Dollar. The BTC/USD pair even broke the $8,800 level ad traded as high as $8,842. There was a close above the $8,600 level and the 100 hourly simple moving average. Later, the pair started a downside correction below the $8,800 level. It tested the $8,650 support, where the bulls emerged. Moreover, the 23.6% Fib retracement level of the recent wave from the $7,995 low to $8,842 high is likely to act as a strong support.
On the downside, there is a key bullish trend line forming with support at $8,640 on the hourly chart of the BTC/USD pair. If there is a downside break below the trend line, the price could test the $8,600 support and the 100 hourly simple moving average. The next important support is near the $8,500 level. If there are more losses, the price could test the $8,400 support area. It coincides with the 50% Fib retracement level of the recent wave from the $7,995 low to $8,842 high.
On the upside, an initial resistance is near the $8,800 level. If there is an upside break above the $8,800 barrier, the price could accelerate above the $8,850 level. The next key resistances on the upside are near the $8,900 and $9,000 levels. If there is a break above $9,000, the price is likely to gain pace above $9,100.
Looking at the chart, bitcoin price is currently consolidating gains above the $8,600 level. In the short term, there could be a downside correction below $8,600. However, there are many supports on the downside near the $8,500 and $8,420 levels. A successful close below the $8,400 level is likely to start a solid downward move towards the $8,100 level in the near term.
Hourly MACD – The MACD is currently in the bearish zone, with positive signs.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level, with a positive angle.
Major Support Levels – $8,600 followed by $8,500.
Major Resistance Levels – $8,800, $8,850 and $8,900.
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Author: Aayush Jindal