- Bitcoin bulls are intentional in containing the daily losses above $8,000.
- The technical picture hints that consolidation is likely above $8,000 in the near term.
Bitcoin is facing losses on the first day of this week’s trading. The declines are an extension of the rejection at $8,200. On Friday last week, BTC bulls pulled the price from the depression that had seen it trade close to $7,600. However, the bullish momentum staled at $8,200, leaving a gap that continues to be explored by the sellers.
On the other hand, the recovery from lows reached in December made it above the key trendline (dropping from 2018’s peak around $13,800). The trendline resistance had been tested numerously without giving in. However, the surge in the new year has seen Bitcoin correct above $8,400.
At the time of writing, BTC is doddering at $8,103 while battling initial resistance at the 23.6% Fibonacci retracement level taken between the last swing high of $14,056 to as swing low of $5,969.
BTC/USD daily chart
Trends seen with the Relative Strength Index (RSI) suggests that the path with the least hurdles is to the south. The RSI is retreating after brushing shoulders with 70 (overbought zone) last week. However, the gradual slope could also mean that sideways trading is the likely direction in the near term.
As far as support is concerned, Bitcoin is initially supported at $8,100. Additional support has been established at $7,800, $7,600 and $7,0000. The above-mentioned trendline resistance has turned into proper support. For now, Bitcoin buyers must ensure the price sticks above $8,000 to give them time to gather strength to attack levels heading to $9,000.
Bitcoin Key Levels
Spot rate: $8,107
Relative change: -72
Percentage change: -0.89%
RSI: Gradual slope suggests that consolidation is possible above $8,000.
The post Bitcoin Price Analysis: BTC/USD Consolidation Above $8,000 Necessary For The Journey To $9,000 appeared first on Coingape.