Key Points
- Bitcoin price traded higher and broke a major resistance at $7,580 against the US Dollar.
- There was a break above a connecting resistance trend line at $7,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to move further higher towards the $7,800 and $8,000 resistance levels.
Bitcoin price is slowly gaining bullish momentum above $7,500 against the US Dollar. BTC/USD is likely preparing for more gains towards the $8,000 barrier.
Bitcoin Price Analysis
Bitcoin price was rejected many times near the $7,550 and $7,580 resistance levels against the US Dollar. The BTC/USD pair recently dipped towards the $7,320 level, where it found strong bids. Later, it started a fresh upside move and gained momentum to break the $7,550 and $7,580 resistance levels. It traded to a new weekly high above the 7,650 level and tested $7,700.
During the upward move, there was a break above a connecting resistance trend line at $7,600 on the hourly chart of the BTC/USD pair. The pair is currently consolidating near the $7,700 level with a bullish angle. On the upside, the next resistance is near the $7,780 level. It coincides with the 1.236 Fib extension level of the last drop from the $7,669 high to $7,201 low. Above this, the price is likely to accelerate above the $7,800 level. The next target for buyers could be $8,000 and the 1.618 Fib extension level of the last drop from the $7,669 high to $7,201 low.
Looking at the chart, the price is placed nicely above the $7,580 support, which was a major resistance earlier. If there is a downside correction, the $7,580 and $7,500 levels are likely to hold declines in the short term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is gaining strength in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well above the 60 level with no negative signs.
Major Support Level – $7,580
Major Resistance Level – $7,800