Key Points
- Bitcoin price is struggling to break the $8,300 resistance area against the US Dollar.
- Yesterday’s highlighted important bearish trend line is intact with resistance at $8,280 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair has to break the $8,280 and $8,300 resistance levels to climb further higher.
Bitcoin price is placed nicely above the $7,850 support against the US Dollar. BTC/USD is likely to surge higher once buyers succeed in clearing the $8,300 hurdle.
Bitcoin Price Analysis
Yesterday, we discussed an important barrier near $8,300 in bitcoin price against the US Dollar. The BTC/USD pair made another attempt to break the stated $8,300 resistance, but it failed. As a result, there was a bearish reaction and the price dipped below the $8,000 level. However, the $7,800-7,850 support area acted as a strong hurdle for sellers and prevented more declines.
A low was formed at $7,854 and the price bounced back. It broke the 50% Fib retracement level of the last decline from the $8,373 high to $7,854 low. However, the price struggled to settle above the $8,200 level and the 100 hourly simple moving average. Moreover, the 76.4% Fib retracement level of the last decline from the $8,373 high to $7,854 low also prevented gains. At the moment, the price is consolidating near the $8,100 level and the 100 hourly SMA. On the upside, yesterday’s highlighted important bearish trend line is intact with resistance at $8,280 on the hourly chart of the BTC/USD pair.
Looking at the chart, the price needs to clear the $8,220 level, trend line, and the $8,300 barrier to climb higher. The next resistance awaits at $8,500, above which, the price could surge above $8,700. The key supports on the downside are $8,000, $7,850 and $7,800.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently flat near the 50 level.
Major Support Level – $7,850
Major Resistance Level – $8,300