Bitcoin Surges But Retracement is Possible In Short-Term
The price of BTC/USD pair moved to the upside by over 5 percent beyond the hurdles at $7,700 and $7,800. The price visited the hurdle at $8,000 and may soon correct lower.
In the previous day, it was established that there are chances of the price to rise towards the hurdles at $7,800 and $8,000. However, it was able overcome every hurdle and surpassed the hurdle zone at $7,800.
Likewise, the price closed over the $7,700 pivot level and the 100 hourly SMA. A look at the hourly chart of BTC against the USD reveals a crucial break over a key contracting triangle with hurdle close to $7,620.
The bears appeared following a rally towards the hurdle at $8,000. The price was able to form a fresh high in 2020 close to $7,990 and it is now retracing lower.
A look at the downside reveals the first support close to the $7,800 zone. Nevertheless, the initial major support is close to $7,740.
The extension of the downside correction could take the price to $7,680 support. Any additional downsides could discourage buyers and make the price to dip towards the support zone at $7,580.
It appears that Bitcoin is halted near the major $8,000 hurdle zone. Hence, a short term retracement under $7,800 is noteworthy.
In conclusion, there is a likelihood of the price obtaining bids close to $7,740 or $7,680. There may be consolidation for some sessions prior to another surge towards $8,000 or even $8,150.
Featured image courtesy of Shutterstock. Source: Cryptopress.