Bitcoin broke a couple of important hurdles near $7,500 and $8,000 on the daily chart against the US Dollar. BTC price action indicates a strong rise towards $9,100 or even $10,000.
- Bitcoin price surged $500 and settled above the key $8,000 resistance against the US Dollar.
- A new 2020 high is formed near $8,464 and the price is currently correcting lower.
- There was a break above a major bearish trend line with resistance near $7,630 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The pair is also trading above the 100-day SMA and it could rise further towards $9,000.
Bitcoin Going Parabolic Again
Recently, there were bullish moves in bitcoin above the $7,500 resistance area against the US Dollar. More importantly, there were a couple of key bullish breaks on the daily chart.
The daily chart suggests that the price formed a strong support base near $6,560 before starting the current rally. There was a clear break above a major bearish trend line with resistance near $7,630.
As a result, bitcoin climbed above the $8,000 resistance and settled above the 100-day simple moving average. The recent rise was stalled near the 50% Fib retracement level of the downward move from the $10,564 high to $6,449 low.
However, the current price action, bullish breaks above the trend line and the 100-day SMA indicate that the bulls are aligning for the next rally above the $8,500 resistance.
The next major resistance is near the $9,000 and $9,100 levels. The 61.8% Fib retracement level of the downward move from the $10,564 high to $6,449 low is also near the $9,000 level.
If the price continues to gain momentum above $9,100, there are chances of a run towards the $10,000 resistance area.
Dips Remain Supported in BTC
In the short term, there could be a couple of downside corrections. In the mentioned case, an initial support is near the $8,300 level.
The main support is near the $8,000 level or the 100-day SMA, which was the recent breakout zone. Any further losses may perhaps lead the price towards the $7,500 support area in the near term.
Looking at the chart, bitcoin price is showing a lot of positive signs above the $8,000 support and the 100-day SMA. As long as there is no daily close below the 100 SMA, there are chances of a strong rise towards the $10,000 resistance.
Technical indicators:
Daily MACD – The MACD is slowly gaining pace in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $8,300 followed by $8,000.
Major Resistance Levels – $8,500, $9,000 and $9,100.
