After a spike below the $8,000 level, bitcoin price found a strong buying interest against the US Dollar. The BTC/USD pair traded as low as $7,915 before starting an upside move. It gained traction and moved above the $8,000, $8,200 and $8,400 resistance levels. The upside move was positive since there was a close above the $8,400 pivot level and the 100 hourly simple moving average.
BTC buyers got in control and pushed the price above the last swing high of $8,506. It opened the doors for more gains and it seems like the price may well test the 1.236 Fib extension level of the last decline from the $8,506 high to $7,915 low. At the moment, the price is consolidating gains above the $8,400 level. There is also a significant ascending channel formed with support at $8,400 on the hourly chart of the BTC/USD pair. Should the price gain bullish momentum, it could easily break the $8,600 resistance to test the 1.618 Fib extension level of the last decline from the $8,506 high to $7,915 low at $8,870.
Looking at the chart, the price remains well supported above the $8,400 level. A downside break below $8,400 may well call for a short-term reversal of the current trend.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slightly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is moving lower towards the 50 level.
Major Support Level – $8,400
Major Resistance Level – $8,650
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