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Bitcoin Bulls Aim Big After Recent Breakout: $8,200 Likely Target

Bitcoin is slowly gaining momentum and it broke the $7,000 resistance against the US Dollar. BTC is showing positive signs and it is likely to surge towards $7,500 and $8,200.

  • Bitcoin is up more than 5% from the $6,500 swing low formed this past week.
  • The bulls are gaining momentum above $7,500 and the 100 simple moving average (4-hours).
  • There was a break above a major declining channel with resistance near $7,040 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is currently trading in a bullish zone and it could rise further towards $7,500 and $8,200.

Bitcoin is Gaining Momentum

This past week, bitcoin regained strength after trading to a new weekly low at $6,482 against the US Dollar. BTC price traded higher steadily and surpassed the $6,800 resistance area.

The bulls managed to lead the price above the main $7,000 resistance area and the 100 simple moving average (4-hours). The price even climbed above the 50% Fib retracement level of the last key decline from the $7,470 high to $6,482 low.

More importantly, was a break above a major declining channel with resistance near $7,040 on the 4-hours chart of the BTC/USD pair. Bitcoin price is now trading nicely above the $7,200 pivot level.

Bitcoin price

Bitcoin price

It is testing the 76.4% Fib retracement level of the last key decline from the $7,470 high to $6,482 low. Therefore, there are high chances of more gains above the $7,300 and $7,400 levels.

An initial resistance is near the $7,500 level, above which the price is likely to accelerate higher. The next key hurdles on the upside are near the $8,000 level. Any further upsides might call for a test of the $8,200 level.

Downside Correction

If bitcoin fails to continue higher or struggles to clear the $7,500 resistance, then it could start a downside correction in the near term. An initial support is near the $7,050 level.

The first major support is near the $6,960 level and the 100 simple moving average (4-hours). Any further losses may perhaps lead the price back towards the $6,500 support area.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly gaining pace in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower from the 70 level.

Major Support Level – $6,950

Major Resistance Level – $7,500

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Risk disclaimer: 76.4% of retail CFD accounts lose money.

Bitcoin Bulls Aim Big After Recent Breakout: $8,200 Likely Target was last modified: April 19th, 2020 by Aayush Jindal

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