Bitcoin Price Analysis: BTC Must Hold $7,600 For Further Gains

There was a sharp recovery in bitcoin price above the $7,600 and $8,000 levels. BTC to USD is currently moving lower, but it is likely to hold the key $7,620 and $7,600 supports.

Key Takeaways: BTC/USD

• Bitcoin price jumped above the $8,000 barrier and traded close to $8,340 against the US Dollar.
• BTC/USD is currently above the $7,600 support and a major bullish trend line on the 2-hours chart (data feed from Bitstamp).
• Ethereum, ripple, and bitcoin cash currently consolidating gains above key supports.

Bitcoin Price Analysis

In the past two days, there was a strong recovery in bitcoin price above the $7,400, $7,550 and $7,600 resistance levels. BTC price even rallied above the $8,000 level and traded close to the $8,340 resistance zone.

Looking at the 2-hours chart, bitcoin traded as high $8,308 and settled well above the 50 simple moving average (2-hours, purple). However, the bulls failed to gain momentum above the $8,300 level and remained well below the $8,340 resistance area.

The price is currently moving lower and is trading below the $8,000 level and the 23.6% Fib retracement level of the upward move from $6,916 to $8,308.

On the downside, there are many important supports near the $7,620 and $7,600 levels. Besides, there is a major bullish trend line forming with support near $7,630 on the same chart. Finally, the 50% Fib retracement level of the upward move from $6,916 to $8,308 is also near the $7,612 level.

If there is a bearish break below the trend line and the $7,600 support, there are chances of a fresh decline in bitcoin price below the $7,500 support level in the coming sessions. The next key supports are $7,450 and $7,245.

Conversely, if bitcoin finds support near the $7,620 area, it could bounce back sharply. An initial resistance is near $8,000, above which there are high chances of a strong bullish wave towards the $8,300 or $8,340 resistance.

The overall price action is positive and it seems like the BTC bulls are likely to remain in action as long as the price is above $7,620 and the 50 simple moving average (2-hours, purple).