Bitcoin Price (BTC) Gaining Bullish Momentum But Still Facing Key Hurdles
Bitcoin price is currently recovering from the $8,415 swing low. BTC to USD traded above $8,600 and it is now approaching the $8,800 resistance area.
Key Takeaways: BTC/USD
- Bitcoin price is slowly correcting higher and trading above the $8,700 resistance against the US Dollar.
- BTC/USD surpassed the $8,580 barrier and a declining channel pattern on the 2-hours chart (data feed from Bitstamp).
- Ethereum is up around 3% and it is likely to correct higher towards the $230.00 level.
Bitcoin Price Analysis
This past week, we saw a downside break in bitcoin price below the $9,000 and $8,840 support levels. BTC to USD even settled below $8,840 and spiked below the $8,600 support level.
Looking at the 2-hours chart, bitcoin traded as low as $8,415 and settled below the 50 simple moving average (2-hours, purple). Recently, the bulls gained control, resulting in a few positive moves above the $8,500 and $8,600 levels.
Besides, the price climbed above the 50% Fib retracement level of the drop from $8,758 to $8,415. More importantly, bitcoin price surpassed the $8,580 barrier and a declining channel pattern on the 2-hours chart.
It has opened the doors for more gains above $8,700 and the 50 simple moving average (2-hours, purple). An immediate resistance is near the $8,800 level. The 1.236 Fib extension level of the drop from $8,758 to $8,415 is also near the $8,840 level to act as a key resistance.
If there is a clear break above the $8,800 and $8,840 levels, the price could start a steady increase. The next key resistance is near the $8,940 level, above which the price could even surge towards the $9,100 level in the near term.
Conversely, bitcoin price might fail to surpass the $8,800 and $8,840 resistance levels. In the mentioned case, there is a risk of a fresh decline below the $8,700 level.
The first support is near the $8,670 level and the 50 simple moving average (2-hours, purple). If BTC settles below the 50 SMA, the bears are likely to aim a test of the $8,500 level or the $8,415 swing low.