- Bitcoin price started a strong downside correction from the $10,069 high against the US Dollar.
- It is currently consolidating above the $8,400 and $8,250 support levels.
- There is a crucial bullish trend line forming with support at $8,410 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could start a fresh rally if there is a clear break above $9,120 and $9,180.
Bitcoin price is currently consolidating losses above the $8,400 support against the US Dollar. BTC is likely to accelerate higher as long as there is no close below $8,250.
Bitcoin Price Analysis
Earlier this month, bitcoin price topped just above the $10,000 level against the US Dollar. BTC traded as high as $10,069 and started a strong downside correction below the $9,565 support zone.
There was a sharp decline below the $9,080 support zone and the 55 simple moving average (4-hours). The price even broke the $8,400 support zone and tested the next major support near the $8,250 level.
A swing low is formed due to a spike at $8,114 and the price is currently recovering. It broke the 23.6% Fib retracement level of the key decline from the $10,069 swing high to $8,114 low.
On the upside, bitcoin price seems to be facing a strong resistance near the $9,080 and $9,120 levels. The 55 simple moving average (4-hours) is also near the $9,120 level to act as a key hurdle. More importantly, the 50% Fib retracement level of the key decline from the $10,069 swing high to $8,114 low is at $9,092.
Therefore, an upside break above the $9,080 and $9,120 resistance levels is needed for a fresh increase in the near term. In the mentioned case, the price could surge above $9,200 and even test the $9,500 and $9,600 levels.
Conversely, the price could restart a downward move below $8,600. On the downside, the first major support is near the $8,400 level. There is also a crucial bullish trend line forming with support at $8,410 on the 4-hours chart of the BTC/USD pair.
Looking at the chart, bitcoin price is clearly trading above the main $8,400 and $8,250 support levels. As long as there is no close below $8,250, the price is likely to rise further above the $9,120 resistance level.
Technical indicators
4 hours MACD – The MACD is now gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is currently close to the 50 level.
Key Support Levels – $8,400 and $8,250.
Key Resistance Levels – $9,080, $9,120 and $9,180.
