Just some few days ago, bitcoin’s price was able to recover above the price highs of $7,900 and $8,000. However, the price did not stay above the $8,000 high for long, and later formed a swing high at $8,080.
There is a major breakout pattern that has begun to form with resistance in the region of $7,940 on the BTC/USD hourly charts. The price of this leading virtual coin was not able to gain a momentum above $8,000, and even recently dropped against the dollar.
The BTC Price Analysis
Just recently, BTC began a decent price recovery against its major currency rival, the USD. The BTC/USD pair was even able to break the $8,000 barrier as well as the 100 hourly SMA – Simple Moving Average.
Since the price wasn’t able to gain a momentum, a fresh decline below the $8,000 high later occurred below the main support area. The price even broke the 23.6% level of Fib retracement that it had recently acquired.
As at now, the price is trading right above $7,800 and the 100 hourly SMA. Of more importance is the fact that there is major breakout pattern that has formed with resistance close to the trading zones of $7,940 on the BTC/USD pair hourly charts.
What Is Now Expected?
One evident fact is that the BTC/USD pair could be getting ready for the next break that could be either above $7,950 and $8,000. Alternatively, the price could also be below the current BTC price of $7,800. Should there be an upside break that is right above $8,000, then the price would definitely climb some more steps higher.
The bulls will only be placed in control if there is a follow through above the $8,080. From the look of things, the next expected resistance could be somewhere in the region of $8,200. However, an initial support on the downside could be somewhere close to $7,800. Below this amount, the price could even drop again in the direction of $7,600.
BTC Price Now Showing Bearish Signs
A keen look at the price charts indicates that BTC price could be indicating a few bearish signs. The signs are right below $7,900 and $8,000.
In any case a fresh decline is witnessed below $7,800, and then the price could be able to move back in the previous bearish zone. There are also possible chances that the price could diminish the chances of a break that is right above $8,200.
A Look At The Technical Indicators
One of the main technical indicators for the price of BTC is the hourly MACD. At the moment, the MACD is losing momentum in the bullish region. The other technical indicator here is the hourly relative strength index – RSI.
The hourly relative strength index for the pair of Bitcoin and USD is currently playing right below the 50 level. It also shows strong signs of moving forward and higher. The major support levels are also the main indicators here. The major support levels are $7,800 and followed by $7,700.