Bitcoin is currently correcting higher from the $7,638 monthly low against the US Dollar. BTC price could correct higher towards the $8,200 resistance area, where the bears are likely to appear.
- Bitcoin is showing a few recovery signs above the $7,800 level against the US Dollar.
- The price is currently forming a rounding pattern, which could lead the price towards $8,200.
- There was a break above a declining channel with resistance near $7,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to face a strong selling interest near the $8,200 and $8,220 levels.
Bitcoin Sighting Short Term Recovery
In the past few sessions, there was a sharp decline in bitcoin from well above the $8,200 level against the US Dollar. BTC price even broke the $8,000 support level and settled well below the 100 hourly simple moving average.
A new monthly low is formed near $7,638 and the price is currently correcting higher. It surpassed the $7,800 and $7,850 resistance levels. More importantly, there was a break above a declining channel with resistance near $7,800 on the hourly of the BTC/USD pair.Chances of More Losses
On the upside, bitcoin is facing two key resistances – $8,000 and $8,200. If it fails to clear either of them, there is a risk of more losses below the $7,800 level.An initial support is near the $7,640 level, below which the bears are likely to aim a test of the main $7,500 support area (as discussed in yesterday’s analysis using the daily chart).
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