Bitcoin surged more than 5% to climb above the $7,700 and $7,800 resistance levels against the US Dollar. BTC price tested the $8,000 barrier and it could correct lower in the short term.
- Bitcoin price traded to a new 2020 high close to the $8,000 mark against the US Dollar.
- Despite all hurdles near $7,700 and $7,800, the bulls were able to gain strength.
- There was a break above a major contracting triangle with resistance near $7,620 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- A short term correction is likely towards the $7,750 and $7,680 support levels.
Bitcoin Tops Near $8,000
Yesterday, we discussed the chances of bitcoin rising towards the $7,800 and $8,000 resistance levels against the US Dollar. BTC overcame all hurdles and was able to climb above the $7,800 resistance area.
Besides, there was a close above the $7,700 pivot level and the 100 hourly simple moving average. More importantly, there was a break above a major contracting triangle with resistance near $7,620 on the hourly chart of the BTC/USD pair.The pair rallied towards the $8,000 resistance, where sellers emerged. A new 2020 high is formed near $7,990 and the price is currently correcting lower. It traded below the 23.6% Fib retracement level of the recent rally from the $7,486 low to $7,990 high.
On the downside, an initial support is near the $7,800 area. However, the first key support is near the $7,740 level. Moreover, the 50% Fib retracement level of the recent rally from the $7,486 low to $7,990 high is also near the $7,740 level. If there is an extended downside correction, bitcoin price might test the $7,680 support. Any further downsides might discourage the bulls and the price could dip towards the $7,580 support area.