Here’s Why Bitcoin Bulls Must Wait For Dip To $8.3K For Another Rally

Bitcoin extended its rally above the $ 8,800 resistance against the US Dollar. However, BTC price might now correct lower towards $ 8,400 or $ 8,300 before a fresh increase.

  • Bitcoin price climbed to a new 2020 high at $ 8,898 against the US Dollar.
  • The price is now showing signs of a downside correction below $ 8,700 and $ 8,600.
  • There is a key bullish trend line forming with support near $ 8,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to find a strong support near $ 8,400 or $ 8,300 if it dips further.

Bitcoin Rally Pauses But Not Likely Over

Yesterday, bitcoin started a nice uptrend above the $ 8,200 and $ 8,400 resistance levels against the US Dollar. Later, BTC price traded in a range before rallying again above the $ 8,500 and $ 8,600 resistance levels.

Moreover, the price jumped above the $ 8,800 level (as discussed yesterday) and settled nicely above the 100 hourly simple moving average. A new 2020 high is formed near $ 8,898 and the price is currently correcting lower.

It already broke the 23.6% Fib retracement level of the recent surge from the $ 8,038 low to $ 8,898 high. An initial support on the downside is near the $ 8,600 and $ 8,620 levels.

The next support could be $ 8,460 or the 50% Fib retracement level of the recent surge from the $ 8,038 low to $ 8,898 high. The main support and buy zone could be near the $ 8,400 and $ 8,300 levels.

Bitcoin Price

Bitcoin Price

Additionally, there is a key bullish trend line forming with support near $ 8,300 on the hourly chart of the BTC/USD pair. Therefore, dips in bitcoin towards the $ 8,400 and $ 8,300 may perhaps find solid bids.

Can BTC Rise To $ 9,200?

The current trend is very positive and the recent break above $ 8,600 was convincing. In the short term, there might be a downside correction towards $ 8,400.

Once a correction phase is complete, BTC bulls are likely to make another attempt to clear the $ 8,800 and $ 9,000 resistance. The main hurdle for a larger move towards $ 10,000 is near the $ 9,200 level.

If bitcoin price fails to clear $ 9,000 and $ 9,200, it is likely to start a larger decline towards the $ 7,200 and $ 7,000 support levels in the coming days.

Technical indicators:

Hourly MACD – The MACD is now back in the bearish zone, with negative signs.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below 60 and it is likely to extend its decline.

Major Support Levels – $ 8,460 followed by $ 8,300.

Major Resistance Levels – $ 8,700, $ 8,800 and $ 9,000.

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