Key Points

  • Bitcoin price surged higher and broke a key resistance near $7,000 against the US Dollar.
  • There is an important short-term bullish trend line formed with support at $7,010 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to extend gains above the recent high of $7,132 and it could test $7,200-7,250 in the near term.

Bitcoin price is trading with a bullish angle above $7,000 against the US Dollar. BTC/USD buyers are in control and they are now aiming a test of the $7,250 resistance.

Bitcoin Price Analysis

Yesterday, we discussed that bitcoin price could accelerate above the $7,000 resistance against the US Dollar. The BTC/USD pair did gain bullish momentum and succeeded in clearing a strong sell zone near $7,000 level. The price even broke the $7,080 resistance and is currently trading well above the 100 hourly simple moving average. A new weekly high was formed at $7,132 and later the price corrected lower.

It declined below the $7,100 level and tested the 23.6% Fib retracement level of the recent wave from the $6,712 low to $7,132 high. At the moment, the price is holding gains above the $7,000 level. More importantly, there is a crucial short-term bullish trend line formed with support at $7,010 on the hourly chart of the BTC/USD pair. If the price breaks the trend line support, it could extend the current correction towards the $6,920 support. It represents the 50% Fib retracement level of the recent wave from the $6,712 low to $7,132 high. Below this, there is a significant bullish trend line with support at $6,910 on the same chart.

Looking at the chart, bitcoin is placed nicely in a positive zone above $7,000. Buyers will most likely attempt an upside break above the $7,132 high for a test of the $7,200 and $7,250 resistances.

Looking at the technical indicators:

Hourly MACD – The MACD for BTC/USD is about to move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI is well above the 55 level.

Major Support Level – $7,010

Major Resistance Level – $7,200

Original Post

Article Source

Published on

2018-08-29 10:15:26

Author

Aayush Jindal

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