Bitcoin Rally Pauses But Not Likely Over, Bulls Aim $8K
- Bitcoin price rallied recently above $7,300 before it ran into $7,500 against the US Dollar.
- The price is showing positive signs it seems like the bulls aim another test of $7,500.
- There is a major bullish trend line forming with support near $7,325 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is sighting an upside break above the $7,420 and $7,500 resistance levels.
Bitcoin price is gaining bullish momentum against the US Dollar. BTC is likely to accelerate higher once again as long as it is above the $7,200 level.
Bitcoin Price Analysis
After forming a strong support near the $7,120, bitcoin price started a nice upward move against the US Dollar. The price rallied above the $7,300 and $7,400 resistance levels.
Moreover, there was a close above $7,300 and the 100 hourly simple moving average. Finally, the price spiked above the $7,500 level, but it failed to continue higher.
A high was formed near $7,531 before the price declined heavily. Bitcoin trimmed most gains and declined below the $7,400 level. Additionally, the price traded towards the $7,300 level and a low is formed near $7,305.
The price is currently moving higher and trading above $7,340. Besides, it is near the 23.6% Fib retracement level of the recent decline from the $7,531 high to $7,305 low.
On the upside, there are many hurdles starting with the $7,400 level. More importantly, the 50% Fib retracement level of the recent decline from the $7,531 high to $7,305 low is near the $7,420 level to stop the upward move.
The main resistance is still near the $7,500 level, above which bitcoin price is likely to accelerate higher. In the mentioned case, the next stop for the bulls could be near the $7,680 and $7,700 levels.
Conversely, the price might continue to struggle near $7,400 and $7,420. On the downside, an initial support is near the $7,325 level. There is also a major bullish trend line forming with support near $7,325 on the hourly chart of the BTC/USD pair.
Looking at the chart, bitcoin price is showing a lot of positive signs above the $7,300 level. Therefore, the price is likely to continue higher towards $7,500 and $7,700 unless the bears are able to push the price below the $7,200 support.