Bitcoin (BTC) Price Showing Signs of Recovery, $8,200 Could Prevent Gains
The price is currently above $7,700, but the bulls could struggle near $8,000 or $8,140.
There is a crucial bearish trend line forming with resistance near $8,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but it might struggle to clear the $8,080 and $8,140 resistances.
Bitcoin price is slowly gaining pace above the $7,700 level against the US Dollar. BTC might continue higher, but the bulls are likely to struggle near $8,080, $8,140 and $8,200.
Bitcoin Price Analysis
After a strong decline, bitcoin price found support near $7,440 level against the US Dollar. The BTC/USD pair traded as low as $8,441 and recently started an upside correction. There was a break above the $7,550 and $7,600 resistance levels. The price is now trading above the $7,700 level, and the 23.6% Fib retracement level of the last decline from the $8,578 high to $7,440 swing low. There was a break above a connecting bearish trend line at $7,800 on the hourly chart.
On the upside, there are many important resistances near the $8,000, $8,010 and $8,080 levels. The 50% Fib retracement level of the last decline from the $8,578 high to $7,440 swing low is also near the $8,080 level to prevent gains. There is also a crucial bearish trend line forming with resistance near $8,120 on the hourly chart of the BTC/USD pair. Above the trend line, the 100 hourly simple moving average is near the $8,200 level to act as a strong resistance. Besides, the 61.8% Fib retracement level of the last decline from the $8,578 high to $7,440 swing low is at $8,140 to prevent gains.
Therefore, the price is likely to face a strong resistance near the $8,080 or $8,140 level. Moreover, a successful break above the $8,200 level is needed for a solid reversal in the coming sessions. On the downside, an initial support is near the $7,700, below which there is a risk of a fresh decline.
Looking at the chart, bitcoin price is showing a few positive signs above the $7,700 level. Having said that, if the price continues to rise, there are chances of it struggling near the $8,080 resistance. As long as the price is trading below the $8,080 and $8,200 levels, it is likely to trade in a range, with a few bearish moves.
Hourly MACD The MACD is currently gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently moving lower towards the 50 level.
Major Support Levels $7,700 followed by $7,600.
Major Resistance Levels $8,000, $8,080 and $8,140.
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