Bitcoin Could Still Rally
The price of BTC against the USD was able to correct lower below $8.7k. However, it was able to secure a powerful support above $8.5k. At the moment, the price is increasing and may rally if it surges above the hurdle zone between $8,840 and $8,900.
In the previous day, there was a retracement to the downside following the rejection of BTC/USD close to $8.9k hurdle. The price went below the support at $8.7k, but the buyers were able to defend $8.54k and $8.5k.
The sellers could not take the price below the neckline support of the double top pattern at $8.54k. It led to a modest increment over the hurdle at $8.7k.
Currently, the price is moving close to the hurdles at $8.8k and $8.82k. A look at the hourly chart of BTC against the USD shows the formation of a fresh breakout pattern with hurdle close to $8,825.
A successful push over the triangle barrier and $8,840 signals greater chances of additional upsides over the barrier at $8.9k. Hence, there is a likelihood of the double top pattern to be aborted and the price could surge over $9k soon.
The failure to surge over the triangle barrier and $8,840 could prompt a move to the downside. The initial major support is close to the triangle at $8,640.
In the event of a downside break, the sellers could likely focus on taking the price to beneath the major supports at $8,540 and $8,500. It may lead to an extended decline towards $8.2k.
Generally, the bulls are striving big time and it appears that it will be difficult to take the price beneath the supports at $8,540 and $8,500.