Bitcoin Price Watch: BTC/USD Hits $8,500, Eyes Correction
- Bitcoin price extended gains and traded close to the $8,500 target against the US Dollar.
- There is a short-term ascending channel in place with support at $8,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair remains in an uptrend, but it could correct a few points towards $8,200 in the near term.
Bitcoin price climbed further towards $8,500 against the US Dollar. BTC/USD remains supported on dips near the $8,300 and $8,200 levels.
Bitcoin Price Analysis
This week, we discussed about Bitcoin price trading higher towards the $8,500 level against the US Dollar. The BTC/USD pair climbed higher and broke the $8,000 and $8,200 resistance levels. It even traded close to the $8,500 target and formed a high near $8,489. At the moment, the price is trading in a range below the $8,500 level with consolidation signs.
It seems like there is a short-term ascending channel in place with support at $8,300 on the hourly chart of the BTC/USD pair. The channel support is near the 23.6% Fib retracement level of the last leg from the $7,602 low to $8,489 high. Below the channel support, the next stop could the $8,200 and $8,150 levels. More importantly, there is an important bullish trend line in place with support at $8,200. The same trend line is positioned near the 38.2% Fib retracement level of the last leg from the $7,602 low to $8,489 high. Therefore, dips from the current levels remain supported near the $8,200 level.
Looking at the chart, the price may perhaps correct lower towards $8,200. However, the overall trend is positive and a break above the $8,490-8,500 zone could accelerate gains. The next resistance awaits near the $8,650 level, above which, it could test $8,800.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently correcting lower from the overbought levels.
Major Support Level – $8,200
Major Resistance Level – $8,500