Bitcoin price surged above the $8,000 and $8,250 resistances this week. BTC is currently correcting gains, while altcoins like Ethereum, ripple, BCH, XLM, ADA, TRX, and NEO rally sharply.
- There were sharp gains in bitcoin price above the $7,500 and $8,000 resistance.
- There is a short term ascending channel forming with support at $8,070 on the 30-minute chart.
- BTC could correct towards the $7,920 or $7,655 support levels before a fresh increase.
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Bitcoin Price Analysis (BTC to USD)
After a strong rally above the $8,000 barrier, bitcoin price faced resistance near the $8,300 and $8,350 levels. BTC started trading sideways, but most major altcoins (Ethereum, ripple, bitcoin cash, stellar, cardano, tron, BNB and EOS) started a significant uptrend with strong bullish moves.
Click to Enlarge Chart
Looking at the 30-minute chart of BTC/USD, the pair extended gains above the key $8,000 resistance level and settled nicely above the 25 simple moving average (30-minute). The pair even broke the $8,250 resistance and traded close to $8,350.
During the upward move, the price broke the last swing high near the $8,194 level. It tested the 1.236 Fib extension level of the downside correction from the $8,194 high to $7,651 low.
However, the price failed to surpass the $8,350 resistance and recently corrected lower. It traded below the $8,300 and $8,250 support levels. An immediate support is near the $8,080 level. There is also a short term ascending channel forming with support at $8,070 on the same chart.
It seems like the price could break the channel support and test the $7,920 support area. If there are additional losses, the price is likely to retest the key $7,655 support area.
Once bitcoin completes the current downside correction near $7,920 or $7,650, it is likely to bounce back in the coming sessions. On the upside, an initial resistance is near $8,250, above which the price is likely to climb above the $8,300 and $8,350 resistance levels.
The market data is provided by TradingView, Bitfinex.