BTC Prepares for A Fresh Rally in Coming Times
The past few weeks have seen the BTC price dip below the $9,000 support against the USD. Despite attempts being made to bounce it back, it still ended up settling down below the 100 hourly simple moving average (SMA).
BTC Upward Correction
Prices recently dropped to a low of around $8,403, before making an upwards correction. Bitcoin is currently trading slightly above the $8,450 and $8,500 levels. A keynote was the recent break above a key bearish line, coupled with some resistance near the $8,575 price point on the hourly chart of the BTC/USD pair. Thanks to that, more gains above the $8,600 level were made possible.
The trading price is now at around the 50% Fib retracement level of the recent downtrend, having swung from $8,821 high to an $8,403 low. The upside however has initial resistance near the $8,660 level and the 100 hourly SMA.
There is a 61.8% Fib retracement level attached to this drop from the $8,821 high to $8,403, being close to the $8,660 level to act as a resistance. If the price can break above the $8,700 level and the 100 hourly SMA, a decent upward price swing will be in the offing.
Once this price rally happens, the $8,800 level becomes the next logical hurdle, above which a bull run is very likely to set in. The bull run will in turn set unprecedented price rallies capable of breaking above $9,000 or even $9,200, in the following trading periods.
Dampened Market Scenario
If the price fails to rally above the $8,700 level or the 100 hourly SMA, a bearish market may set in. Two key supports are set on the downside at $8,500 and $8,400. A further depreciation below the previous $8,403 low will signify dampened markets, with the next set of key downside supports being near $8,200 and $8,000.
Technical indicators imply that the hourly MACD for the BTC/USD pair is gradually moving in the bullish zone. A boost to the hourly RSI (Relative Strength Index) for the pair places it back above the 50 levels. The major support levels are set at $8,500 and $8,400, whereas major resistance levels are also at $8,700, $8,800, and $9,000.