Bitcoin price started an upside correction above the $8,000 resistance against the US Dollar.

The price is currently up around 5% and it recently tested the $8,350 area.

There was a break above yesterday’s highlighted declining channel with resistance near the $8,060 level on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price is currently consolidating gains and it could correct lower towards $8,150 or $8,050.

Bitcoin price is currently rebounding above $8,200 against the US Dollar. However, BTC is still facing a lot of hurdles on the upside near $8,400 and $8,500.

Bitcoin Price Analysis

Yesterday, BTC traded to a new weekly low near $7,770 against the US Dollar. Later, the price started an upside correction above the $7,850 and $7,920 resistance levels. Moreover, there was a break above the $8,000 resistance and the 100 hourly simple moving average. During the rise, there was a break above yesterday’s highlighted declining channel with resistance near the $8,060 level on the hourly chart of the BTC/USD pair.

The pair even climbed above the $8,200 resistance and tested the $8,350 level. A swing high was formed near $8,348 and the price is currently correcting gains. It is trading towards the 23.6% Fib retracement level of the recent rebound from the $7,770 low to $8,348 high. It seems like there is a rising channel forming with support near the $8,200 level on the same chart.

If there is a downside break below the channel support, the price could correct lower towards the $8,150 level. The main support on the downside is near the $8,050 level and the 100 hourly simple moving average. Moreover, the 50% Fib retracement level of the recent rebound from the $7,770 low to $8,348 high is close to the $8,060 level to provide support.

Therefore, dips towards the $8,050 level might find support in the near term. Any further declines could push the price towards $8,000 or the 61.8% Fib retracement level of the recent rebound from the $7,770 low to $8,348 high. On the upside, there are many hurdles near $8,350, $8,400 and $8,500. A successful close above the $8,500 resistance is must for the price to move into a positive zone.

Looking at the chart, bitcoin is rebounding from the $7,770 swing low. However, the price is still trading well below the main $8,500 resistance area. In the short term, there could be another dip towards $8,150 or $8,050 before the price climbs above $8,350.

Technical indicators:

Hourly MACD – The MACD is slowly moving into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now correcting lower towards the 60 level.

Major Support Levels – $8,150 followed by $8,050.

Major Resistance Levels – $8,350, $8,400 and $8,500.