Bitcoin price Tested The $8K Barrier And It Could Correct Lower In The Short Term
Bitcoin overcame all hurdles and was able to climb above the $7,800 resistance area. Besides, there was a close above the $7,700 pivot level and the 100 hourly simple moving average. More importantly, there was a break above a major contracting triangle with resistance near $7,620 on the hourly chart of the BTC/USD pair.
The pair rallied towards the $8,000 resistance, where sellers emerged. A new 2020 high is formed near $7,990 and the price is currently correcting lower. It traded below the 23.6% Fib retracement level of the recent rally from the $7,486 low to $7,990 high.
If there is an extended downside correction, bitcoin price might test the $7,680 support. Any further downsides might discourage the bulls and the price could dip towards the $7,580 support area.
Related Reading: Can Bitcoin Price Break Past $7.65K To ‘Fly’ Higher?
It seems like BTC stalled close to the key $8,000 resistance area. Therefore, a short term correction cannot be ignored below the $7,800 area.
Having said that, the price is likely to find bids near $7,740 or $7,680. Later, it could consolidate for a couple of sessions before another rise towards $8,000 or even $8,150.
Looking at the chart, bitcoin price is likely to correct lower towards $7,680 before a fresh increase. Only if it settles below $7,500, the bears could take control and the price might drop to $7,000.
Hourly MACD – The MACD is slowly reducing its bullish slope.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower from the 80 zone.
Major Support Levels – $7,740 followed by $7,680.
Major Resistance Levels – $7,980, $8,000 and $8,150.
Bitcoin price Tested The $8K Barrier And It Could Correct Lower In The Short Term – Source: https://www.newsbtc.com
Click here to buy/sell Bitcoin and Cryptocurrencies on Binance exchange with a 10% trading fee discount.