Bitcoin Is Losing Bullish Momentum of $8k: Technicals Show A Correction At $8500

Wilson74

New Member
Apr 27, 2020
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Bitcoin is up 2% and it broke the $7,600 resistance area against the US Dollar. However, BTC price is likely to face a strong resistance near $8,000 in the near term.

  • Bitcoin is showing signs of exhaustion above $7,500 and $7,600 against the US Dollar.
  • The bears are likely to put a strong fight near the $8,000 resistance area.
  • There is a key bullish trend line forming with support near $7,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could spike towards the $8,000 resistance, where the bulls are likely to face many hurdles.
Bitcoin Approaching Key Resistance
In the past few sessions, bitcoin remained well bid above the $7,400 and $7,420 levels against the US Dollar. BTC price corrected a few points below the $7,555 support, but dips were limited.

A low was formed near $7,484 and the price started a fresh increase. It climbed above the $7,555 level and the bulls were able to push the price above the key $7,600 resistance .

A new weekly high is formed near $7,792 and the price is now trading well above the 100 hourly simple moving average. Bitcoin is currently consolidating gains above $7,700. It tested the 23.6% Fib retracement level of the recent rise from the $7,484 low to $7,792 high.

On the downside, an initial support is seen near the $7,635 level. It is close to the 50% Fib retracement level of the recent rise from the $7,484 low to $7,792 high. More importantly, there is a key bullish trend line forming with support near $7,600 on the hourly chart of the BTC/USD pair.