After a sharp increase, bitcoin price corrected lower sharply below $8,500 against the US Dollar.

The price is currently consolidating above the key $8,300 support area.

There was a break below a key bullish trend line with support near $8,420 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

The price must stay above the $8,300 and $8,250 support levels to start a fresh increase in the near term.

Bitcoin price is struggling to hold gains above $8,300 against the US Dollar. BTC needs to surpass the $8,500 and $8,550 resistance levels to continue higher.

Bitcoin Price Weekly Analysis (BTC)

This past week, BTC gained strong bullish momentum above the $8,300 and $8,350 resistances against the US Dollar. The BTC/USD pair climbed more than 5% and broke the $8,500 and $8,700 resistance levels. Moreover, there was a close above $8,500 and the 100 simple moving average (4-hours). A new monthly high was formed near the $8,934 level and later the price started a sharp downward move.

The price broke the $8,800 and $8,500 support levels. Additionally, there was a break below the 50% Fib retracement level of the upward move from the $7,763 low to $8,934 high. More importantly, there was a break below a key bullish trend line with support near $8,420 on the 4-hours chart of the BTC/USD pair. The pair even traded below the $8,350 support area.

At the moment, the price is consolidating losses above the $8,300 support area. It seems like there is a strong support forming near the $8,300 level and the 100 simple moving average (4-hours). Moreover, the 61.8% Fib retracement level of the upward move from the $7,763 low to $8,934 high is also near the $8,300. If there is a downside break below the $8,300 support area, bitcoin price could move back into a bearish zone.

The next key support area is near the $8,250 level, below which it could move towards the $8,000 level. On the upside, there is a major hurdle forming near the $8,500 and $8,550 levels. A convincing close above the $8,550 resistance area could set the tone for more upsides in the coming sessions.

Looking at the chart, bitcoin price is currently consolidating above the key $8,300 support area. As long as there is no daily close below $8,300, there are high chances of a fresh increase above the $8,500 resistance area in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to move back into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level, with a positive angle.

Major Support Level – $8,300

Major Resistance Level – $8,500