Currently, Bitcoin (BTC) is trading above the $8,200 level. Despite starting a downside consolidation from its 2020 high of $9,191 over the US Dollars, the price of BTC remains in an uptrend zone.
Before it started the downside retracement, the price of Bitcoin formed a short-term top near to $9,191 level. It collapsed below $9,000 and $8,800 as it entered the declining area. Besides, the price closed beneath the support level of $8,500.
Analysts found a number of support levels for Bitcoin that are close to $8,200 and $8,00, while the major support level is near $8,000 due to its closed position to the 100-day SMA. In the case of no consolidation, the decline will find enough support.
Based on the BTC/USD chart, there’s a key barrier found at $8,500. Aside from that, a bullish flag or bearish channel is forming near the $8,500 level.
The price of BTC is required to surge past the hurdles between $8,500 and $8,540 to call for a fresh increase. Above those levels, a rally towards $9,000 and $9,200 is possible. Then, the support level of $8,000 will be the key bullish area. A price action beneath the $8,000 region can lead to an immediate support level close to $7,670.
In the case that the Bitcoin’s price breaks beneath the $7,670 and $7,600, then there will be a bullish perspective invalidation at the moment. But, if it closed under those levels, the price should be set to re-test the $6,500 support level.
A few days ago, Bitcoin entered a quick rejection at $8,500 level after the bulls prompt the weekly low of $8,200. That is despite the selloff act as the key resistance level.
The ability of the buyers to push above that level led Bitcoin to form a bullish W bottom formation in the 4-hour chart. This indicates that BTC could soon regain the local highs at $9,200 level.
Many analysts expect that Bitcoin could rally towards $9,000 before entering another enough resistance to in halting the momentum.
The bears have recently pushed the price under the Fib retracement degree of 23.6%, transferring $6,836 low to $9,191 high. Apart from that, there’s a daily close under the support zone of $8,500.
Furthermore, the Fib retracement degree of 50% from $6,836 low to $9,291 high is also close to $8,000. In the case that the price of BTC enters a further consolidation, the dips will remain supported on the downside.
As for the upside, the $8,500 level will act as the major barrier to the bulls. Besides, as mentioned, there’s a formation of a bullish flat or declining channel near the $8,500 level in the daily BTC/USD daily chart.
Overall, the coming few hours will answer the question of whether or not the current rally of the crypto is an intra-range movement that might result to further rejection or it will soon increase the 2020 rally.
Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9
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