Bitcoin Price Forecast: BTC/USD Buyers Are Back, But Can They Break This?

Bitcoin price is surging higher after a major downside move towards $6,000 against the US dollar. BTC/USD has moved up by more than $2,000, but can the pair break a crucial resistance? Let’s find out.

We all saw a major downside move in bitcoin price recently. It traded below the $8,000 and $7,200 support levels to test the $6,000 support zone. Fortunately, there was no test of the $5,000 level and the price bounced sharply.

Key Points

• Bitcoin price is back above the $8,000 level against the US Dollar.
• There is a crucial bearish trend line forming with current resistance at $8,400 on the 4-hours chart of the BTC/USD pair.
• The pair has to break the $8,400 and $8,500 resistance levels to challenge $9,600.

Bitcoin Price Forecast and Analysis (BTC/USD)

Recently, we saw a nasty decline in bitcoin price from well above $14,000 to well below $7,000. The price tumbled by more than 60% to trade as low as $5,995 (data feed of bitfinex).

Later, BTC/USD formed a major bottom and traded above the $7,000 resistance. During the upside move, it broke the 50% Fibonacci retracement level of the last decline from the $9,501 high to $5,995 low.

However, the pair is facing a crucial resistance near $8,400 and $8,500. There is also a crucial bearish trend line forming with current resistance at $8,400 on the 4-hours chart.

The par has to clear the $8,500 resistance the bearish trend line to gain further momentum. Above $8,500, the next stop could be the $9,600 level.

On the downside, an initial support is at $7,600. If bitcoin buyers fail to move the price above $8,500, there is a chance of a downside reaction. The $7,600 and $7,400 support levels are important barriers on the downside. Below $7,400, the price may retest $7,000.

Overall, BTC/USD is back in action in the green zone, but a break above $8,500 is must to maintain momentum in the near term towards $9,600 and $10,000.

Trade safe traders and enjoy the ride!!!

Charts Courtesy – Trading View.