Bitcoin Price Watch: BTC/USD Primed for Gains

technical analysis bitcoin

Key Points

Bitcoin price is following a bullish path above $8,600 against the US Dollar. BTC/USD has to move above $9,000 to accelerate gains in the near term.

Bitcoin Price Analysis

There was a slow and steady rise in bitcoin price above the $8,500 resistance against the US Dollar. The price traded higher and even broke the $8,600 resistance level to settle above the 100 hourly simple moving average. The upside move was positive, as the price traded close to the $8,900 resistance level. A high was formed at $8,899 before the price started a downside correction.

It moved down and traded below the 23.6% Fib retracement level of the last wave from the $8,305 low to $8,899 high. However, the price remains well supported on the downside above the $8,500 level. An immediate key support is at $8,600, which is the 50% Fib retracement level of the last wave from the $8,305 low to $8,899 high. Furthermore, the 100 hourly SMA is positioned near $8,550 to prevent declines in the near term. Additionally, this week’s ascending channel with current support at $8,480 is intact on the hourly chart of the BTC/USD pair.

Looking at the chart, the price is placed nicely above $8,500 and the 100 hourly SMA. Therefore, as long as the price is above $8,500, it could continue to move higher towards $9,000. A break above $9,000 will most likely confirm a solid bullish bias towards $10,000.

Looking at the technical indicators:              

Hourly MACD – The MACD for BTC/USD is slowly moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently moving lower towards the 50 level.

Major Support Level – $8,500

Major Resistance Level – $8,900

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