After several days of dilly-dallying, Bitcoin has shown some decisiveness as it made a smart recovery to break major resistance at $8,250. From an intra-day low of $7,912.29 to a high of $8,324.76 during the last 24 hours, Bitcoin has come a long way to prove that it is on a strong wicket now.
Bitcoin was trading below the $8,000 price mark for the better part of the last 24 hours, but recovered smartly later. At the time of writing, Bitcoin is trading at $8,264, thereby breaking through major resistance at $8,250. Further major resistance lies at $8,300 and $8,400.
Although the Bitcoin price is rebounding nicely above $8,100 and $8,200, experts are of the view that it is still too early to call the current move a change in trend.
During the last week, Bitcoin was mostly in a bearish mood, staying below the $8,200 support area. The Bitcoin price even settled below $8,000 and the 100-hourly SMA. However, the $7,800 area acted as strong support. As a result, Bitcoin started a decent recovery above $8,000 and the 100-hourly SMA. Moreover, there was a break above the contracting triangle, with resistance near $8,000 on the hourly chart.
What’s noteworthy is that the Bitcoin price surpassed main resistance at $8,200. Finally, the price traded above $8,250 and tested the $8,300 zone. A high formed above $8,300 and the price is currently consolidating its gains. Immediate support lies near the $8,200 mark or the 23.6% Fib retracement level of the recent recovery from $7,912 to $8,324.
Technical analysts are of the view that there is a short-term breakout or bullish continuation pattern forming with resistance near $8,250. If there is an upside break above $8,250, the Bitcoin price could continue to rise towards resistance at $8,300 and $8,350. The next key resistance on the upside is near the $8,400 level.
On the other side, analysts note that if there’s a downside break below support at $8,200, the Bitcoin price could start an extended downside correction. The next key support is near the $8,100 area. Moreover, the 50% Fib retracement level of the recent recovery from $7,884 to $8,305 is also near the $8,095 level, in order to provide support. If there are further downsides, the Bitcoin price could again test the $8,000 mark.
Experts are of the opinion that Bitcoin seems to be recovering nicely above $8,200. However, the current price action below $8,300 still suggests signs of caution. Only a close above $8,400 may perhaps call for a strong rise towards $9,000 and $9,200, experts say.