Bitcoin is up more than 5% and it broke the key $7,500 resistance against the US Dollar. BTC is now approaching a major hurdle near $8,000 and the 100-day simple moving average.
- Bitcoin is gaining bullish momentum above $7,000 and $7,200 against the US Dollar.
- The price is likely to face a strong resistance near $8,000 and the 100-day simple moving average.
- There was a break above a crucial bearish trend line with resistance near $7,040 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The pair could either extend its rally above $8,000 to $9,000 or it might face rejection.
Bitcoin Price is Facing Huge Resistance
There was a slow and steady recovery in bitcoin from the $3,932 swing low against the US Dollar. BTC price broke many hurdles in the past few days and settled above the $6,000 resistance area.
The current upward move gained pace above the $6,500 and $7,000 resistance levels. There was also a break above the 50% Fib retracement level of the key decline from the $10,500 swing high to $3,921 swing low.Fresh Decline?
If bitcoin price fails to continue above the $8,000 resistance or the 100-day SMA, it could start a fresh decline. An initial support on the downside is near the $7,200 level (the recent breakout zone).A bearish break below the $7,200 support might lead the price towards the $6,800 support. Any further losses could initiate a drop towards the $6,200 support area in the coming days.
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