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