The price of bitcoin (BTC) is recovering quickly: can bulls overcome obstacles?

• Bitcoin prices fell sharply and tested the US $ 8,000 support zone against the US dollar.
• The price has recovered and exceeded the resistance levels of $ 8,300 and $ 8,450.
• A rising channel is forming with support close to $ 8,450 on the hourly chart of the BTC / USD pair (Kraken data stream).
• The pair is facing strong resistance near the $ 8,600 zone and the single moving average every hour.

The price of bitcoin is currently recovering above US $ 8,450 against the US dollar. BTC must go beyond the $ 8,600 barrier to return to a positive zone and move even higher.

Bitcoin price badysis

Recently, the price of bitcoins fell sharply after hitting a new high in 2019, at $ 9,091 against the US dollar. The BTC / USD pair collapsed below support levels of $ 8,800 and $ 8,600. The decline was strong and exceeded the support of $ 8,450, plus the simple moving average of 100 hours. In addition, there was a clear break between support of $ 8,300 and the pivotal level of $ 8,220. The price has traded near the $ 8,000 level, where bulls have shielded other losses.

A low swing was formed near $ 7,999 before the price started a strong recovery. There was a pump above the $ 8,300 level and the Fib retracement level of 23.6% from the recent record low of $ 9,091 to $ 7,999. More importantly, the price has traded above the $ 8,450 resistance. For the moment, the exchange trades above the Fib retracement level of 50% from the recent decline, which has gone from the high of $ 9,091 to $ 7,999. In addition, there is a rising channel with support close to $ 8,450 on the hourly chart of the BTC / USD pair.

On the downside, significant support is building around the $ 8,450 level. If there is a break below $ 8,450, the price could start to fall again and move closer to the $ 8,300 level. The next key supports are approaching levels of $ 8,220 and $ 8,150. On the upside, the main resistance is around $ 8,600 and SMA every 100 hours. The Fib retracement level of 61.8% from the recent record low of $ 9,091 to $ 7,999 is also close to the $ 8,670 level. As a result, a successful break above the levels of $ 8,600 and $ 8,670 is needed to achieve more short-term gains.

Looking at the chart, the price of bitcoin has well exceeded $ 8,450 and is currently showing a positive zone. If the bulls remain in action and raise the price above $ 8,600, chances are they will continue.

Technical indicators:

Hourly MACD – The MACD is back in the bullish zone, with positive signs.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD has returned above level 50, with a positive angle.

Key levels of support – $ 8,450, followed by $ 8,300.

Main resistance levels – $ 8,600, $ 8,670 and $ 8,800.