Bitcoin price formed a high near $8,348 and recently corrected lower against the US Dollar.

The price is currently trading near the $8,120 level and it could test $8,050 or even $8,000.

There is a short term contracting triangle forming with resistance near $8,160 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price is likely to remain well bid above the $8,050 and $8,000 support levels in the near term.

Bitcoin price is slowly declining below $8,200 against the US Dollar. However, BTC is likely to hold the $8,000 support and it could bounce back above $8,200.

Bitcoin Price Analysis

Yesterday, we saw a nice upward move in BTC above the $8,200 resistance area against the US Dollar. The price even settled above the $8,200 level and the 100 hourly simple moving average. Moreover, the price climbed above the $8,300 level and finally tested the $8,350 area. A high was formed near $8,348 and recently the price started a downside correction.

There was a break below the $8,200 support area. Additionally, the price traded below the 23.6% Fib retracement level of the upward move from the $7,770 low to $8,348 high. On the downside, there are a few key supports near the $8,100, $8,050 and $8,000 levels. An intermediate support is near the $8,080 level and the 100 hourly SMA. Besides, the 50% Fib retracement level of the upward move from the $7,770 low to $8,348 high is near the $8,060 level.

Therefore, dips remain well supported on the downside near the $8,050 level. At the moment, there is a short term contracting triangle forming with resistance near $8,160 on the hourly chart of the BTC/USD pair. If bitcoin breaks the $8,160 resistance, there are chances of a fresh increase above the $8,200 and $8,300 levels. Finally, a clear break above $8,350 might push the price towards the key $8,500 resistance.

On the other hand, a downside break below $8,050 and the 100 hourly SMA might increase bearish pressure. The next key support is near $8,000 or the 61.8% Fib retracement level of the upward move from the $7,770 low to $8,348 high. Should there be a downside break below $8,000, the price could continue to move down.

Looking at the chart, bitcoin is currently correcting lower below the $8,200 level. However, the $8,050 and $8,000 levels are important supports and the price is likely to bounce back in the near term.

Technical indicators:

Hourly MACD – The MACD is likely to move back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is slowly rising towards the 50 level.

Major Support Levels – $8,050 followed by $8,000.

Major Resistance Levels – $8,160, $8,200 and $8,350.