Analysis

Bitcoin (BTC) Price Rallies 10%: Bulls Remain In Driver’s Seat

  • Bitcoin price gained a strong bullish momentum and broke the key $ 8,300 resistance against the US Dollar.
  • The price surged more than 10% and broke the $ 8,500 and $ 8,800 resistance levels.
  • There was a break above a major triangle resistance near $ 8,020 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair traded close to the $ 9,000 level and it is currently correcting lower towards key supports.

Bitcoin price rallied significantly after it broke $ 8,300 against the US Dollar. BTC is currently correcting gains, but it is likely to find support near $ 8,600 or $ 8,500.

Bitcoin Price Analysis

After forming a support base above the $ 7,800 and $ 7,900 levels, bitcoin price rallied significantly against the US Dollar. The BTC/USD pair surged above key resistance near $ 8,000 and $ 8,200 to move into a bullish zone. Moreover, there was a close above the $ 8,200 resistance and the 100 hourly simple moving average. It opened the doors for more gains above the $ 8,400 and $ 8,500 resistance levels.

During the rise, there was a break above a major triangle resistance near $ 8,020 on the hourly chart of the BTC/USD pair. The pair gained traction and traded towards the $ 9,000 barrier. A new 2019 high was formed at $ 8,955 and the price is currently correcting lower. It is testing the 23.6% Fib retracement level of the upward move from the $ 7,912 low to $ 8,955 high. If it extends the correction, it is likely to find a strong support near the $ 8,600 level. Below $ 8,600, the main supports are $ 8,500 and $ 8,440.

Besides, the 50% Fib retracement level of the upward move from the $ 7,912 low to $ 8,955 high is near the $ 8,435 level to hold losses. If there is an extended decline, the price could find bids near the $ 8,300 level. The stated $ 8,300 level was a resistance earlier and now it is likely to act as major buy zone.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price clearly made a nice upward move above the $ 8,300 and $ 8,500 resistances. It almost tested the $ 9,000 level and currently correcting gains. However, there are many supports on the downside near the $ 8,600 and $ 8,500. On the upside, an initial resistance is near the $ 8,800 level, followed by $ 8,850. The main hurdle is near the $ 9,000 level, above which the bulls could aim the $ 9,280 and $ 9,500 levels in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is currently showing a lot of positive signs in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower towards the 70 level.

Major Support Levels – $ 8,600 followed by $ 8,500.

Major Resistance Levels – $ 8,800, $ 8,900 and $ 9,000.

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Analysis – NewsBTC

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