Recently, there was a downside correction in bitcoin price below the $7,650 support. BTC to USD tested the key $7,460 support level and started a fresh increase above the $8,000 barrier.
Key Takeaways: BTC/USD
- Bitcoin price found support near the $7,460 level and recently climbed above $8,000 against the US Dollar.
- BTC/USD broke the key $7,900 resistance and a key bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum, ripple, and bitcoin cash also started a decent upward move.
Bitcoin Price Analysis
Recently, there was a slow and steady decline in bitcoin price below the $8,100 and $7,840 support levels. BTC price even broke the $7,750 support level and spiked below the $7,500 level.
Looking at the 2-hours chart, bitcoin traded as low as $7,462 and recently started a fresh increase. The price gained traction above the $7,750 level and the 50% Fib retracement level of the decline from $8,318 to $7,462.
Moreover, the price broke the key $7,900 resistance and a key bearish trend line on the same chart. Moreover, the price traded above the $8,000 barrier and the 50 simple moving average (2-hours, purple).
At the moment, the price is trading above the $8,010 level and the 61.8% Fib retracement level of the decline from $8,318 to $7,462. On the upside, an immediate resistance is near the $8,110 level, above which the price is likely to climb towards the $8,318 swing high.
If there are more upsides, the price could test the $8,500 level of the 1.236 Fib extension level of the decline from $8,318 to $7,462. On the other hand, if there is a downside correction, the recent resistance near the $7,880 level and the 50 simple moving average (2-hours, purple) are likely to provide support.
If BTC price fails to stay above the $7,840 level, there is a risk of a fresh drop in the near term. In the mentioned case, bitcoin price could trade lower towards the $7,740 or $7,650 level.
The overall price action is positive above $7,800 and it seems like BTC is likely to accelerate above the $8,110 and $8,200 levels in the near term.