- 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.