- Bitcoin weekend retracement to $7,500, a necessary evil as it created fresh demand for BTC.
- On stepping above $8,000 BTC/USD scaled the levels touching $8,100.
Bitcoin bulls are up in arms once again and this time the focus is not only on assaulting $8,000 level but retracting back to glory near $9,000. Contrary to the expectations, the weekend session did not bear fruits, instead, it gave for the bears to retest the support at $7,500. However, it appears that the retracement was a necessary evil as it created fresh demand for BTC.
BTC/USD 15′ chart
Looking at the 15-minutes chart, the reversal initially corrected above both the 21 Exponential Moving Average (EMA) and the EMA50 before hitting a snag at $7,750. Correction from this level found support slightly above the 23.6% Fib level taken between the last swing of $8,136.03 and the swing low of $7,450.
In spite of the correction, the Relative Strength Index (RSI) stayed above 40.00 confirming to the bulls that the trend was still bullish. The encouraged bulls increased their positions as BTC/USD attempted another assault at the EMAs and the resistance at $7,700. The formation of a Doji candlestick and the intact positive levels saw Bitcoin spike incredible in an engulfing candlestick where it zoomed above the resistance at $7,800 and extended the gains towards $8,00.
On stepping above $8,000 BTC/USD scaled the levels touching $8,100 before sliding back under $8,000. Meanwhile, it is changing hands at $7,959 amid growing bearish pressure. It was essential that if Bitcoin assaults $8,000, high support is established. However, the lack of support is likely to bring the asset right back in the bearish zone between $7,500 and $7,900.
The status quo on the market is bearish but it is good that the price is above the EMA21 and EMA50. Initial support is $7,900; slightly above the 61.8% Fib level support. $7,800 is another support area while $7,500 is the key support in the short-term.
Bitcoin Technical Indicators
RSI 15-minutes: Retraction from overbought shows weakening bullish pressure.
Key support areas: $7,900, $7,800 and $7,500.
Resistance: $8,000, $8,100 and $8,200 in the short-term and medium-term.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige