Do or Die For Bitcoin Bulls: Here’s What Could Trigger Short Term Rebound

Bitcoin is facing a crucial resistance near $8,200 against the US Dollar (as discussed yesterday). BTC price could trade in a range for a few sessions before the next move.

• Bitcoin is trading in a bearish zone below the $8,200 resistance area against the US Dollar.
• The bulls are putting up a fight to defend the $7,800 and $7,700 support levels.
• There is a key contracting triangle forming with resistance near $7,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could make another attempt to surpass the main $8,200 resistance area in the near term.

Bitcoin is Facing Hurdles

Yesterday, we discussed the chances of a short term recovery in bitcoin towards the $8,200 resistance area against the US Dollar. BTC price did start an upward move above the $8,000 and $8,100 levels.

However, the price failed to gain strength above the $8,180 and $8,200 resistance levels. A swing high was formed near $8,165 and the price remained well below the 100 hourly simple moving average.

It trimmed gains and tested the $7,700 support area. At the moment, bitcoin price seems to be trading in a contracting range below $8,000. The last swing high was near $8,034 before the price declined below the 23.6% Fib retracement level of the recent leg from the $7,728 low to $8,034 high.

On the downside, an initial support is near the $7,880 level. It is close to the 50% Fib retracement level of the recent leg from the $7,728 low to $8,034 high.

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More importantly, there is a key contracting triangle forming with resistance near $7,950 on the hourly chart of the BTC/USD pair. If there is an upside break above the $7,950 and $8,000 levels, the price could make another attempt to surpass the main $8,200 resistance area in the near term.

Bitcoin Price

If the bulls succeed in gaining strength above the $8,200 resistance area, the price may perhaps start a short term recovery towards the $8,500 and $8,600 levels.

Fresh Decline?

If bitcoin fails to continue above the $8,000 pivot level or the $8,200 resistance zone, there is a risk of a fresh decline in the coming sessions.

An initial support is near the $7,640 level, below which the price is likely to dive towards the main $7,500 support area (as discussed using the daily chart).

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently flat near the 45 level.

Major Support Levels – $7,800 followed by $7,640.

Major Resistance Levels – $8,000, $8,200 and $8,500.