Bitcoin is trading in a bullish zone above the $7,450 and $7,400 support levels against the US Dollar. BTC might dip a few points, but it remains well bid for a rally to $8,000.
- Bitcoin is showing a lot of positive signs above the $7,400 and $7,200 support levels.
- A clear break above the $7,650 resistance could open the doors for a fresh rally.
- There is a short term contracting triangle forming with resistance near $7,625 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct a few points, but the bulls are likely to protect the $7,400 support
Bitcoin is Back in Uptrend
This past week, bitcoin started a strong rise from the $7,028 swing low against the US Dollar. BTC price gained bullish momentum and broke the key $7,200 resistance level.It opened the doors for a decent increase above the $7,400 resistance and the 100 simple moving average (4-hours). The price even climbed above the $7,500 hurdle and traded to a new weekly high at $7,788.
Recently, there was a downside correction below the $7,600 level. Bitcoin traded below the 23.6% Fib retracement level of the recent rise from the $7,028 swing low to $7,788 high. On the downside, the $7,400 support area is acting as a strong buy zone (the previous breakout zone). The 50% Fib retracement level of the recent rise from the $7,028 swing low to $7,788 high is also near $7,408 and acting as a decent support base. It seems like the price is currently consolidating above the $7,400 support. More importantly, there is a short term contracting triangle forming with resistance near $7,625 on the 4-hours of the BTC/USD pair.
If there is an upside break above the $7,625 and $7,650 resistance levels, the price is likely to resume its uptrend. An initial resistance is near the $7,800 level, above which it could test the key $8,000 resistance area.