Bitcoin Breaking This Single Level Will Spark a Pre-Halving Rally
- Bitcoin is following a positive path above the $7,500 pivot level against the US Dollar.
- The price is now facing a major hurdle near $8,000 and the 100-day simple moving average.
- There is a key bullish trend line forming with support at $7,200 on the daily chart of the BTC/USD pair (data feed from Kraken).
- The pair could either surge above the $8,000 resistance or retest the bullish trend line.
Bitcoin Price is Approaching Key Hurdle
After forming a major swing low, bitcoin started a steady rise above the $6,500 and $7,500 resistance levels against the US Dollar. BTC price even settled above the $7,500 pivot zone to move into a bullish zone.
During the rise, it surpassed the 50% Fib retracement level of the main drop from the $10,497 high to $3,930 swing low. The current price action is positive above $7,500, but the bulls are clearly facing a major hurdle near the $8,000 level.
The 100-day simple moving average is positioned near the $8,000 level to prevent an upside break. The 61.8% Fib retracement level of the main drop from the $10,497 high to $3,930 swing low is also close to $7,980 level.
More importantly, there is a connecting resistance trend line forming at $8,000 on the daily chart of the BTC/USD pair. Therefore, a successful break above the $8,000 level and the 100-day simple moving average could open the doors for a pre-halving rally in the coming days.
The next key resistance is near the $8,280 level, above which bitcoin bulls are likely to aim a test of the $9,000 and $9,200 levels in the medium term.
If bitcoin price fails to surpass the $8,000 resistance and the 100-day SMA, there might be a bearish reaction. An initial support is near the $7,500 level.
The main support is near the $7,200 level and a key bullish trend line forming with support at $7,200 on the same chart. A bearish break below the $7,200 level could spark a fresh bearish wave. In the mentioned bearish case, the price could dive towards the $6,000 level.