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Bitcoin Price Won’t Go Down Quietly: Risk of Bounce Grows

Bitcoin is currently consolidating above the key $8,500 support area against the US Dollar. BTC price could start a fresh rally if it clears the $8,800 resistance area. Bitcoin price is confined in a range above the main $8,500 support against the US Dollar. The bulls are facing hurdles near the $8,760 and $8,800 resistance levels. There is a key contracting triangle forming with resistance near $8,720 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could either rally above $8,800 or start a downside extension below $8,470. Bitcoin Sighting Upside Break Yesterday, we discussed a downside correction in bitcoin from well above the $9,000 level against the US Dollar. BTC price followed a short term bearish path and broke the $8,800 support area. Moreover, there was a close below the $8,800 level and the 100 hourly simple moving average. Finally, bitcoin tested the key $8,500 support area and recently started a tiny recovery. The price tested the $8,500 support area on multiple occasions, but the bears failed to gain traction. As a result, the price recovered above the $8,650 level, plus the 23.6% Fib retracement level of the downward move from the $9,186 high to $8,470 swing low. On the upside, there are a few key hurdles forming near the $8,760 and $8,800 levels for bitcoin. Besides, there is a key contracting triangle forming with resistance near $8,720 on the hourly chart of the BTC/USD pair. More importantly, the 100 hourly SMA is near the $8,800 level and the 50% Fib retracement level of the downward move from the $9,186 high to $8,470 swing low. Therefore, a successful break above the $8,800 resistance could start a fresh rally. In the mentioned case, bitcoin price is likely to climb above the $9,000 and $9,100 levels in the near term. Any further gains could lead the price towards $9,300. Importance of $8,500 for BTC As mentioned, the $8,500 support area holds a lot of importance for BTC bulls. If the price fails to stay above the $8,500 and $8,470 support levels, there could be another slide. Below $8,470, bitcoin is likely to extend its losses towards $8,200 or $8,000. The main support is near $8,000, where the bulls are likely to take a stand. Technical indicators: Hourly MACD – The MACD is slowly gaining momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving higher and it is just above the 50 level. Major Support Levels – $8,560 followed by $8,500. Major Resistance Levels – $8,760, $8,800 and $8,830. The post appeared first on NewsBTC.

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