Bitcoin price broke above the $7,700 and $7,800 resistance and tested the $8,000 level before correcting lower. Will the BTCUSD pair continue the strong bullish move?
On January 6, the price of Bitcoin (BTC) was trading in a bullish trend zone. The price recovered nicely above the $7.300 and $7,400 resistance levels. This paved the way for additional gains above the $7,500 resistance.
Moreover, there was a close above the $7,700 and Bitcoin price spiked towards the $8,000 resistance, where sellers emerged. A new 2020 high is formed near $7,990 and the price is currently correcting lower. At the time of writing, Bitcoin price is trading at the $7,870 level.
On the upside, if more buyers emerge, the crypto’s price will rise and retest the $8,000 level. A break above the $8,000 level could see the price surge towards $8,500 and $8,800. Conversely, if there is an extended downside correction, Bitcoin price might test the $7,700 support. Any further downsides might discourage the bulls and the price could dip towards the $7,500 support level.
Meanwhile, the Moving Average Convergence Divergence (MACD) line and the signal line are above the zero line which indicates a buy signal.
On the 1-hour chart, the price of BTCUSD is in a bullish trend. Nevertheless, the pair is likely to correct lower towards $7,680 before a fresh increase. Only if it drops below $7,500, the bears could gain control of the market and the price might decline to $7,000.
Meanwhile, the MACD line and the signal line are above the zero line which indicates a buy signal.
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.
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