Bitcoin Price Analysis: The Bullish Setup

Key Points

Major Support Level – $8,400

Major Resistance Level – $8,650

Bitcoin has attempted to move higher and has since broke the $8,300 resistance level against the US Dollar.
The charts show an ascending channel formed with support at $8,400 on the hourly chart of the BTC/USD pair.
There is high likeliness that we will see continued gains above $8,650 if it continues to follow the ascending channel.
Bitcoin price is trading with an upward bias above $8,400 against the US Dollar. BTC/USD could extend the current move above the $8.650 and $8,800 resistance levels.

Bitcoin Analysis for Price

Bitcoin has found strong buying support around that $8000 level and it would be tough to argue for a move below that value area. The BTC/USD pair traded as low as $7,915 before starting an upside move. It gained traction and moved above the $8,000, $8,200 and $8,400 resistance levels. The upside move was positive since there was a close above the $8,400 pivot level and the 100 hourly simple moving average. I think we could see a $10,000 price over the next couple of weeks.

BTC buyers got in control and pushed the price above the last swing high of $8,506. It gave way to more gains and it seems like the price may well test the 1.236 Fib extension level of the last decline from the $8,506 high to $7,915 low. At the moment, the price is consolidating gains above the $8,400 level. There is also a significant ascending channel formed with support at $8,400 on the hourly chart of the BTC/USD pair. Should the price gain bullish momentum, it could easily break the $8,600 resistance to test the 1.618 Fib extension level of the last decline from the $8,506 high to $7,915 low at $8,870.

If we look at the chart above, we can see that the price remains well supported above the $8,400 level. A downside break below $8,400 may well call for a short-term reversal of the current trend.

Here is what the technical indicators are showing:

Hourly MACD – The MACD for BTC/USD is slightly in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is moving lower towards the 50 level.