Bitcoin Price Analysis: BTC Primed For Further Upsides

After a minor downside correction, bitcoin price jumped back above the $8,640 resistance area. BTC to USD seems to be setting the stage for more upsides above the $8,800 and $8,880 levels.

Key Takeaways: BTC/USD

• Bitcoin price tested the $8,420 support level and recently climbed back above $8,550 and $8,700 against the US Dollar.
• BTC/USD is trading nicely above the key $8,500 support and bullish trend line on the 2-hours chart (data feed from Bitstamp).
• Ethereum, ripple, and bitcoin cash are gaining bullish momentum above key resistances.

Bitcoin Price Analysis

After trading as high as $8,946, bitcoin price started a downside correction. BTC price traded below the $8,640 and $8,500 support levels, but the $8,420 level acted as a strong support.

Looking at the 2-hours chart, bitcoin struggled near $8,950 and corrected below the $8,700 level plus the 23.6% Fib retracement level of the last ride from $7,902 to $8,946. There was even a spike below the $8,600 support area.

The price traded below $8,500 and tested an important support near the $8,420 level. Moreover, the 50 simple moving average (2-hours, purple) acted as a solid buy zone.

Finally, the price bounced back after tagging the 50% Fib retracement level of the last ride from $7,902 to $8,946. It is now trading nicely above the key $8,500 support and bullish trend line on the same chart.

On the upside, the price is currently testing an important resistance near $8,800 and a connecting bearish trend line. If there is an upside break above the $8,800 and $8,880 levels, the price will most likely surge above the $8,900 and $8,946 levels.

On the flipside, if there is a downside correction, the price might find bids near the $8,600 level and the 50 simple moving average (2-hours, purple). As long as the price is above the $8,600 support, it is likely to clear the $8,800 resistance area.

Overall, bitcoin price is trading with a positive bias above the $8,600 support area. The technical structure is positive, suggesting an upside break above $8,800. The main hurdle above $8,800 is near the $9,000, where sellers might take a stand.