/Bitcoin Price Primed For Fresh Rally And Only 1 Thing Is Holding It Back

Bitcoin Price Primed For Fresh Rally And Only 1 Thing Is Holding It Back

Bitcoin is trading back in an uptrend above the $7,800 and $7,700 support levels against the US Dollar. BTC could start another strong uptrend if it settles above $8,200.

  • After a downside correction, bitcoin price found support near $7,700 against the US Dollar.
  • The price is currently rising, but it is facing hurdles near $8,200 on the upside.
  • There is a key breakout pattern forming with resistance near $8,160 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to rally if it climbs above $8,160 and successfully settles above the $8,200 barrier.

Bitcoin Could Rally Soon

This past week, bitcoin started a downside correction from the $8,473 high against the US Dollar. BTC price declined below the $8,200 and $8,000 support levels.

However, the $7,700 and $7,600 levels acted as a strong support. Moreover, the price stayed well above $8,500 and the 100 simple moving average (4-hours). A swing low is formed near $7,659 and bitcoin price is currently trading higher.

There was a break above the 50% Fib retracement level of the downward move from the $8,473 high to $7,659 low. The current wave is facing hurdles near the $8,200 resistance area.

Bitcoin PriceBitcoin Price

Bitcoin Price

Besides, there is a key breakout pattern forming with resistance near $8,160 on the 4-hours chart of the BTC/USD pair. Finally, the 76.4% Fib retracement level of the downward move from the $8,473 high to $7,659 low is also near the $8,280 level.

Therefore, a clear break above the $8,200 and $8,280 levels could set the pace for a fresh rally. In the mentioned bullish case, bitcoin price could surge towards $8,500 and $8,800.

Main Buy Zones for BTC

Conversely, there are chances of a downside break below the triangle support near $7,900 and $7,850. The main supports and buy zones are near $7,700 and $7,600.

A successful close below the $7,600 support could start a substantial decline in the coming sessions. The next major support is near the 100 simple moving average (4-hours) at $7,530, below which the price is likely to drop towards the $7,000 level.

Looking at the chart, bitcoin price is showing signs of a bullish break above the $8,200 resistance. The only thing holding it back is $8,280. A successful close above $8,280 could set the pace for a strong rise towards $8,500 and $8,800.

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to gain bullish momentum.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.

Major Support Level – $7,600

Major Resistance Level – $8,280

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