Bitcoin is Showing Early Signs of Fresh Rally, But 100 SMA is the Key

Bitcoin is likely forming a short term bottom near $8,400 against the US Dollar. However, BTC price must climb above the 100 hourly SMA and $8,800 to start a fresh increase.

  • Bitcoin is currently consolidating above the $8,400 and $8,500 support levels against the US Dollar.

  • The bulls need to gain control above $8,700 and the 100 hourly simple moving average.

  • There was a break above a key bearish trend line with resistance near $8,575 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair could start a strong increase if it settles above $8,700 and $8,800.

Bitcoin Reaching Key Resistance

This past week, we saw a steady decline below the $9,000 support in bitcoin against the US Dollar. BTC price made a couple of attempts to bounce back, but it failed and settled below the 100 hourly simple moving average.

On the downside, it seems like the price is finding a significant buying interest near the $9,500 and $9,400 levels. The recent low was formed near $8,403 and the price is currently correcting higher. Read More...