Finally, there was an upside break in bitcoin price above the $8,350 resistance area. BTC to USD surged above the $8,850 level and it is currently aiming further gains above the $9,000 level.
Key Takeaways: BTC/USD
- Bitcoin price started a strong rally from the $7,909 swing low and climbed above $8,850 above $8,000 against the US Dollar.
- BTC/USD is now well above the key $8,350 level and bullish trend line on the 2-hours chart (data feed from Bitstamp).
- Ethereum, ripple, and bitcoin cash also gained a strong bullish momentum.
Bitcoin Price Analysis
After a couple of swing moves, bitcoin price finally broke to the upside from the $7,909 swing low. BTC price climbed above many important hurdles, including $8,200, $8,350 and $8,500.
Looking at the 2-hours chart, bitcoin clearly gained a strong bullish momentum after it settled above the $8,350 level and the 50 simple moving average (2-hours, purple). The bulls took complete control and pushed the price to a new multi-month high above $8,850.
The price traded close to the $7,950 level and a swing high was formed at $8,946. At the moment, the price is consolidating gains above the $8,700 level and the 23.6% Fib retracement level of the recent rise from $7,909 to $8,946.
If there is a downside break below the $8,700 level, the price could start a bearish correction. The next support is near the $8,430 level and the 50% Fib retracement level of the recent rise from $7,909 to $8,946.
However, the main support is near the $8,350 level, which acted as a crucial barrier before the recent rise. More importantly, the price is now well above the key $8,350 level and bullish trend line on the same chart.
On the upside, the price may soon retest the $8,946 swing high. A clear break above $8,946 is likely to open the doors for more gains above the $9,000 and $9,080 levels. The next important resistance for the bulls is near the $9,200 level.
Overall, bitcoin price is placed nicely above the $8,700 and $8,430 support levels, and there are high possibilities of an upside break above $9,000 and $9,080.