Bitcoin (BTC) Price Gaining Momentum: Break Above $8,500 Likely
The price seems to be setting up for more gains above the $8,300 resistance area.
There is a crucial bullish trend line forming with support near $8,140 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is placed nicely above the $8,100 pivot level and it seems like there could be more upsides.
Bitcoin price traded to a new weekly high above $8,300 against the US Dollar. BTC is showing a lot of positive signs and it could even rally towards the $8,500 resistance area.
Bitcoin Price Analysis
In the past few sessions, there was a steady rise in bitcoin price above the $8,000 barrier against the US Dollar. The BTC/USD pair gained bullish momentum above $8,150 and even broke the $8,200 level. Recently, the price broke the last swing high and traded above the $8,300 level. A new weekly high was formed at $8,344 before the price started a downside correction.
Still, the price is trading well above the $8,000 level and the 100 hourly simple moving average. It corrected below the $8,250 level and the 23.6% Fib retracement level of the recent leg from the $8,006 low to $8,344 high. However, the recent decline is finding bids near the $8,175 level. It represents the 50% Fib retracement level of the recent leg from the $8,006 low to $8,344 high.
On the downside, there are many supports near the $8,175 and $8,150 levels. Moreover, there is a crucial bullish trend line forming with support near $8,140 on the hourly chart of the BTC/USD pair. The trend line support coincides with the 61.8% Fib retracement level of the recent leg from the $8,006 low to $8,344 high.
Therefore, as long as the price is above the $8,140 level, it is likely to continue higher. On the upside, an initial resistance is near the $8,300 level, followed by the $8,344 high. If there is an upside break above $8,344, the price is likely to climb higher towards the $8,500 resistance area.
Looking at the chart, bitcoin price is clearly trading in a positive zone above the $8,150 and $8,100 support levels. The main support is near $8,000, below which the price may perhaps move into a bearish zone. The current price action is positive, suggesting an upside break above the $8,300 and $8,350 levels in the near term.
Hourly MACD The MACD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently moving higher towards 60 and 65.
Major Support Levels $8,150 followed by $8,100.
Major Resistance Levels $8,300, $8,350 and $8,500.
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