Bitcoin is Consolidating Above 100 SMA and Likely Gearing For Lift-off To $8K

Bitcoin gained traction and settled above the $7,000 resistance against the US Dollar. BTC price is consolidating gains above the 100 hourly SMA and likely to grind higher towards $7,500.

Bitcoin is rising steadily and it is positioned nicely above $7,000 against the US Dollar.
There is a strong support base forming near the $7,050 and $7,000 levels.
There is a major bullish trend line forming with support near $7,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue higher towards $7,500 as long as it is above the 100 hourly SMA.

Bitcoin Turns Green
After a successful break above the $6,800 resistance, bitcoin price gained bullish momentum against the US Dollar. BTC extended its rise above the $7,000 resistance and the 100 hourly simple moving average.
It even surpassed the $7,200 resistance and traded as high as $7,302 before starting a downside correction. The bears were able to push the price below the $7,100 level, but the bulls were able to protect the $7,050 region.
Bitcoin formed a low at $7,066 and remained stable above the 100 hourly simple moving average. It seems like there is a strong support base forming near the $7,050 level. Moreover, there is a major bullish trend line forming with support near $7,100 on the hourly chart of the BTC/USD pair.
Bitcoin Price
The price is currently rising and trading near the 50% Fib retracement level of the recent decline from the $7,302 high to $7,066 low. An immediate resistance on the upside is near the $7,215 and $7,220 levels.
The first key hurdle is near the $7,250 level or the 76.4% Fib retracement level of the recent decline from the $7,302 high to $7,066 low. A successful break above the $7,250 level could open the doors for more upsides towards the $7,300 and $7,400 levels. The next major resistance is near the $7,500 level.
Key Breakdown Zone
On the downside, there is a major support near the $7,050 level and the 100 hourly SMA. If bitcoin fails to stay above the $7,050 and $7,000 support levels, it could start a fresh decline.
A successful close below the $7,000 support level might lead the price towards the $6,800 support area in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.
Major Support Levels – $7,050 followed by $7,000.
Major Resistance Levels – $7,250, $7,300 and $7,500.
Image from unsplash

You may also like...