Bitcoin (BTC) Price Forming Double Bottom: Setting Stage For Rebound
- Bitcoin price seems to be forming a strong support base near $7,440 against the US Dollar.
- The price recovered above $7,700 and it is currently trading near the $7,800 resistance area.
- There is a major bearish trend line forming with resistance near $7,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely forming a double bottom pattern and it could stage a decent recovery above $8,000.
Bitcoin mining hardware indicates Bitcoin price is showing a lot of positive signs above the $7,500 level against the US Dollar. BTC could start a strong recovery once it clears $7,950 and $8,000.
Bitcoin Price Analysis
Recently,bitcoin mining hardware suggested that bitcoin price retested the last swing low near $7,440 against the US Dollar. The BTC/USD pair remained stable above $7,440 and the bulls defended more losses. A new swing low was formed and the price recently moved higher. There was a break above the $7,500 and $7,600 levels to start an upside correction. The price also climbed above the 23.6% Fib retracement level of the last drop from the $8,578 high to $7,441 low.
At the moment, the price is trading above the $7,700 level and testing a major hurdle near $7,800. There is a connecting bearish trend line forming with resistance near $7,800 on the hourly chart of the BTC/USD pair. Above $7,800, there is another major bearish trend line forming with resistance near $7,950 on the same chart. The 100 hourly simple moving average is also near the trend line and $7,960 to act as a hurdle. The main resistance is near the $8,000 level. The 50% Fib retracement level of the last drop from the $8,578 high to $7,441 low is also near the $8,000 level.
Therefore, a successful break above both trend lines and $8,000 could start a strong upward move. The next key resistance is near the $8,144 level. It represents the 61.8% Fib retracement level of the last drop from the $8,578 high to $7,441 low. On the downside, the price seems to be forming a double bottom pattern near the $7,440 level. A clear break below $7,440 could negate the bullish view and spark more losses.
Looking at the chart, bitcoin price is trading with positive moves above $7,600. Having said that, the bulls need to clear $7,950 and $8,000 to start a strong rally. If they continue to struggle near $8,000, the price might start a fresh decline below $7,500 and $7,440.
Hourly MACD – The MACD is currently moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently positioned well above the 50 level.
Major Support Levels – $7,700 followed by $7,600.
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