Key Points
- Bitcoin price is trading with bullish moves above the $7,000 level against the US Dollar.
- There was a break above a major bearish trend line with resistance at $7,610 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is now facing another important barrier near the $7,700 level and the 100 simple moving average (4-hours).
Bitcoin price is trading nicely above the $7,400 pivot against the US Dollar. BTC/USD could accelerate gains once it breaks the $7,700 and $8,000 barriers.
Bitcoin Price Decline
After a major decline, bitcoin price formed a decent support above the $7,000 handle against the US Dollar. The price started an upside move and traded above the $7,200 and $7,400 resistance levels. There was also a break above the 23.6% Fib retracement level of the last decline from the $8,606 high to $7,057 low. Moreover, there was a close above $7,500 barrier, which is a positive sign.
During the upside, there was a break above a major bearish trend line with resistance at $7,610 on the 4-hours chart of the BTC/USD pair. The pair is now trading above the $7,550 pivot level and it looks set for more gains in the near term. On the upside, the $7,700 level and the 100 simple moving average (4-hours) is a key hurdle for buyers. Above $7,700, the 50% Fib retracement level of the last decline from the $8,606 high to $7,057 low is positioned at $7,830 to prevent gains.
Looking at the chart, the price has to break the $7,700 and $7,830 resistance levels to trade further higher. On the flip side, if there is a downside correction, the broken resistances at $7,500 and $7,400 are likely to act as supports.
Looking at the technical indicators:
4-hours MACD – The MACD for BTC/USD is slowly gaining pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently just around the 60 level.
Major Support Level – $7,400
Major Resistance Level – $7,830