- Bitcoin attempts breakout past the EMA 100 but a bounce is likely at the descending trendline resistance.
- Short-term bullish bias prevails amid expanding trading volume.
Bitcoin is relatively pushing for consolidation within a wide range between $8,200 and $8,500. The sideways movement comes after Bitcoin was rejected at $8,800 last week. Support above $8,200 was strong enough to cut short the drop. However, the bounce that followed was sabotaged by increasing selling pressure under $8,500.
BTC/USD four-hour chart
For now, Bitcoin is trading marginally above $8,330 amid a weakly building bullish momentum. The immediate upside is limited by the 100 Exponential Moving Average (EMA). Similarly, the descending trendline has been tested twice. Both of those times, it has resulted in reversal actions with Bitcoin slashing off most of the gains made. This trendline on the one-hour chart is still hindering growth and is likely to force a devastating drop in the price.
Consequently, the lack of a breakout could further demoralize the bulls who have been under high pressure in the past few days. It is important that the buyers defend $8,200 support as if it is the last one. Because once broken, instability coupled with panic could see Bitcoin disintegrate to test $7,800 (major support).
Meanwhile, the Relative Strength Index (RSI) signals bullish short-term momentum. The RSI is forming a higher low pattern which signifies an improving bulls’ grip. The expanding volume means that more action is likely to be stirred to the upside in the short-term.
According to the data from Bybit Bitcoin contracts trading platform, BTC/USD last price is $8,336. It has a lower mark price of $8,330.66 and an even lower index price of $8,329.65. Bitcoin contracts on Bybit have seen a 24-hour trading volume of 517,245,187 contracts.
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BTC/USD Key Technical Levels
Spot rate” $8,336
Trend: Short-term bullish
Support: $8,200, $8,100 and $7,800
Resistance: $8,400, $8,600 and $8,800