- Bitcoin blasts past $8,000 forming a new weekly high at $8,296.
- Technical analysis points towards the diminishing buying pressure in the short-term.
BTC/USD has reignited its uptrend once again by a climb past $8,000 level. This move is incredible for Bitcoin and most investors are looking anxiously waiting for a break above the upper range limit at $8,500. BTC/USD has been in lock-step trading within a narrow $1000 range for more than one week now.
BTC/USD 15-min chart
The correction from the recent low at $7,500 has seen Bitcoin achieve a higher high and higher low pattern in spite of the ranging crypto prices on the market. Looking at Bitcoin from a short-term perspective, we see it has a bullish bias. The short-term ascending trendline support has been instrumental in barricading declines from yesterday.
The Rising Triangle Breakout
Over the last few days, the consolidating price led to the formation of a rising contracting triangle pattern, whose breakout birthed the incredible rise past the critical $8,200. BTC/USD formed a Doji candlestick followed by an engulfing bullish candlestick that not only diminished the resistance at both $8,100 and $8,200 but also formed new weekly highs at $8,296 (on Coinbase).
The formidable gains are supported by the Simple Moving Average (SMA) 15-min at $8,000 while the longer term 100 SMA 15-min will provide support at $7.941. The increasing moving average gap means that Bitcoin still has the strength to correct higher and form new support.
Technical analysis at the time of writing shows the diminishing buying pressure as Bitcoin drops further below $8,200. The RSI has retreated from the overbought and moving horizontally below the 70 marks. The next course of action for Bitcoin seems to be inclined sideways but support above $8,100 is needed to forge another pathway to $9,000.
Bitcoin Technical Indicators
Moving Average Gap: the Widening gap between the 50 SMA and the 100 SMA confirms bullish pressure.
RSI: Ranging trend shows potential for consolidation above $8,100.
Key Resistance: $8,200 and $8,300.
Key support: $8,000, $7,700 and $7,500.
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