Bitcoin Poised for A Fresh Rally in The Near Term
The bitcoin price has seen a steady decline over the past few weeks below the $9,000 support against the USD. All attempts made to bounce back failed and it settled below the 100 hourly simple moving average (SMA).
A recent low was formed around $8,403 and the price is currently making an upward correction. The number one crypto by market cap is currently trading above the $8,450 and $8,500 levels. Notably, there was a break above a key bearish trend line, with resistance near $8,575, on the BTC/USD pair hourly chart. This has paved way for more gains above the $8,600 level.
BTC is now trading close to the 50% Fib retracement level of the recent downtrend from the $8,821 high to $8,403 low. On the upside, there is an initial resistance near the $8,660 level and the 100 hourly SMA.
The 61.8% Fib retracement level of the recent drop from the $8,821 high to $8,403 low is also near the $8,660 level to act as resistance. A successful break above the $8,700 level and the 100 hourly SMA, could set the pace for a decent upward move.
The next major hurdle is near the $8,800 area, above which the bulls are likely to take control. In such bullish scenario, the price is likely to break above $9,000 or even $9,200, in the coming sessions.
Failure to break above the $8,700 level or the 100 hourly SMA might lead BTC to another bearish reaction. Two key supports are seen on the downside at $8,500 and $8,400. A successful break below the $8,403 low may perhaps lead the price towards the next set of important supports near $8,200 and $8,000.
Technical indicators also suggest that the hourly MACD for the BTC/USD pair is slowly moving in the bullish zone. The hourly RSI (Relative Strength Index) for the pair is back above the 50 level. Major support levels are at $8,500 and $8,400, whereas major resistance levels are also at $8,700, $8,800 and $9,000.
Featured image courtesy of Shutterstock. Source: Cryptopress.