- Bitcoin numerously defends trendline support forming a higher low pattern.
- Correction above $8,400 and the 100 EMA likely to boost BTC/USD towards $8,800 hurdle.
Bitcoin is generally trending upwards. However, you can only appreciate this when you get a broader look. From the recent lows roughly at $7,700, BTC/USD has formed a relatively strong lower pattern. The ascending trendline has been tested severally each time, Bitcoin has bounced back up. Unfortunately, last week’s correction towards $9,000 was sabotaged at $8,800.
BTC/USD 4-hour chart
The granddaddy of cryptocurrencies is exchanging hands at $8,295. Bitcoin has made $8,300 the latest pivotal level. At the same time, the movement to the upside is capped under $8,400. Moreover, the price is trading below the 100 Exponential Moving Average (EMA). Correction above the EMA would give Bitcoin the much-needed boost to clear the resistance at $8,400.
From a technical perspective, Bitcoin is likely to remain lethargic between $8,400 and $8,200 in the near-term. For instance, with the Relative Strength Index (RSI) leveling around, sideways trading is the most likely direction of movement. Traders should be on the lookout for changes in the RSI either towards 70 or 30. The change in direction will signal upward movement in price or breakdown towards $8,200 support.
The Moving Average Convergence Divergence (MACD) is also horizontal at 0.000. This sideways movement mean that the bulls currently have the energy to defend short-term support areas. However, movement towards $8,800 depends on an improving technical picture as well as zoom above the seller congestion at $8,400.
Bitcoin Key Technical Levels
Spot rate: $8,292
Relative Change: -66
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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