Bitcoin is showing some early signs of a potential new rally and forming a short-term bottom near $8,400 against the US dollar. However, the price of the most dominant coin must climb above the 100 hourly SMA and $8,800 in order to start a fresh increase in the cryptocurrency news.
Currently, Bitcoin is consolidating itself above the $8,400 and $8,500 support levels. The past week, we saw a steady decline below the $9,000 support in the Bitcoin trends against the US dollar. The price made a couple of attempts to bounce back but failed and settled below the 100 hourly simple moving average.
On the downside, we can see that the price is finding a significant buying interest near the $9,500 and $9,400 levels. The recent low formed near $8,403 is still in and the price is currently correcting higher.
The early signs of a new rally also show that BTC is trading above the $8,450 and $8,500 levels. More importantly, there was a break above a key bearish trend line with resistance near $8,575 on the hourly chart of the BTC/USD pair. This is what opened the doors for more gains above the $8,600 level.
The BTC/USD pair is now trading near the 50% Fib retracement level of the recent decline. On the upside, an initial resistance is seen near the $8,660 level and the 100 hourly simple moving average. The decline from the recent high at $8,821 to the low of $8,403 shows that there is some initial resistance and chances of an upward move.
If BTC fails to climb above $8,700 soon, there is a risk of another bearish reaction in the Bitcoin price news. On the downside, there are two key supports at $8,500 and $8,400. A downside break below the $8,403 low may perhaps lead the price towards a set of supports at $8,200 and $8,000. However, now we are hoping to see the early signs of a recovery and a new swing above $9,000 if everything plays out nicely.
- Hourly MACD – The MACD is slowly moving in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is back above the 50 level.
- Major Support Levels – $8,500 followed by $8,400.
- Major Resistance Levels – $8,700, $8,800 and $9,000.
The total cryptocurrency market cap is at $246 billion and the 24 hour volume is at $130 billion today. Bitcoin’s dominance is at 64%, respectively.
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