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- After a downside correction, bitcoin price found support near $6,860 against the US Dollar.
- The price is currently rising and trading nicely above the $7,400 resistance.
- There was a break above a major declining channel with resistance near $7,345 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The price is likely to continue higher towards the $7,800 and $8,000 resistance levels.
Bitcoin price is showing a lot of bullish signs against the US Dollar. BTC bulls are in control and it seems like they are aiming a test of the $8,000 resistance.
Bitcoin Set to Rise Further
This past week, bitcoin extended its downside correction below the $7,200 support area against the US Dollar. BTC price even broke the $7,000 support and the 100 simple moving average (4-hours).
However, the $7,860 area acted as a strong support and prevented further losses. A low was formed near $6,859 and the price recently started a strong upward move. It surpassed the $7,000 and $7,200 resistance levels.
Besides, there was a break above the 50% Fib retracement level of the downward move from the $7,531 high to $6,859 low. More importantly, there was a break above a major declining channel with resistance near $7,345 on the 4-hours chart of the BTC/USD pair.
Bitcoin price is now trading nicely above $7,400 and the 100 simple moving average (4-hours). An immediate resistance is near the last swing high at $7,531.
If there is a clear break above the $7,531 high, the price is likely to test the $7,690 level. It represents the 1.236 Fib extension level of the downward move from the $7,531 high to $6,859 low.
A successful break above the $7,690 area could set the pace for a test of the $7,800 resistance. The final target for the bulls may perhaps be $8,000 in the coming days.
Pullback in BTC Could be Limited
If there is a downside correction, the price could test the $7,300 support. The first key support is near the $7,260 level and the 100 SMA. Any further losses might restart the downtrend in bitcoin towards the $7,000 and $6,860 support levels.
Looking at the chart, bitcoin price is clearly trading in an uptrend above the $7,300 and $7,400 levels. In the short term, there could be a downside correction, but the bulls seem to be aiming a test of $7,800 or $8,000 in the near term.
Technical indicators
4 hours MACD – The MACD for BTC/USD is gaining bullish momentum.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Level – $7,250
Major Resistance Level – $7,530
