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- Bitcoin price is showing positive signs above the $7,400 resistance area against the US Dollar.
- The price is likely to clear the $7,560 and $7,600 resistances to continue higher.
- There is a major bullish trend line forming with support near $7,490 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rally once there is a successful close above $7,600 and $7,700 in the coming days.
Bitcoin price is trading in a positive zone above $7,400 against the US Dollar. BTC is likely to test the $8,000 resistance as long as it is above the $7,160 swing low.
Bitcoin Price Analysis
In the past few sessions, there was a steady rise in bitcoin above the $7,320 resistance against the US Dollar. Moreover, BTC price broke the $7,400 resistance area and settled above the 100 hourly simple moving average.
Finally, the price climbed above the $7,500 area and tested the $7,600 resistance area. A high is formed near $7,585 and the price is currently correcting lower.
It broke the $7,550 level, plus the 50% Fib retracement level of the recent wave from the $7,400 low to $7,585 high. Besides, the price spiked below the $7,500 support area.
However, bitcoin buyers were able to protect any further losses below $7,480. Additionally, the 61.8% Fib retracement level of the recent wave from the $7,400 low to $7,585 high also acted as a decent support.
More importantly, there is a major bullish trend line forming with support near $7,490 on the hourly chart of the BTC/USD pair. Therefore, a downside break below the trend line support and $7,500 could trigger an extended downside correction.
The next major support is near the $7,440 level and the 100 hourly simple moving average. Any further losses will most likely lead the price towards the $7,355 level. It represents the 1.236 Fib extension level of the recent wave from the $7,400 low to $7,585 high.
On the upside, there are a few important resistances near $7,580 and $7,600. A successful close above $7,600 and a follow through above $7,700 is likely to start a strong rally towards the $8,000 resistance zone.
Looking at the chart, bitcoin price is clearly showing a lot of positive signs above the $7,400 and $7,440 support levels. In the coming days, there are chances of a decent and steady rise towards the $8,000 level as long as there is no close below $7,160.
Technical indicators:
Hourly MACD – The MACD is about to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.
Major Support Levels – $7,500 followed by $7,440.
Major Resistance Levels – $7,580, $7,600 and $7,700.
