Bitcoin price started a strong rally and surged above the $7,200 and $7,460 resistances. BTC/USD is currently consolidating gains and likely to rise further towards $7,800.
Yesterday, we saw how the bitcoin price turned positive above the $7,000 pivot zone. BTC/USD traded above the main $7,200 resistance area to start a convincing upside.
Looking at the 1-hour chart, the price gained bullish momentum above the $7,460 resistance and the 25 SMA (1-hour, orange). Finally, the price spiked above $7,700 and it traded to a new weekly high at $7,780.
Recently, there was a downside correction below the 23.6% Fib retracement level of the surge from the $7,042 low to the $7,780 high. However, the previous resistance near the $7,460 level is acting as strong support.
The next key support is near the $7,410 level. It is close to the 50% Fib retracement level of the surge from the $7,042 low to the $7,780 high.
More importantly, the bitcoin price seems to be following a key bullish trend line with support near $7,400 on the same chart. Below the trend line support, the price could test the main support near the $7,200 level (the recent breakout zone).
At the outset, the price is consolidating gains above $7,460. In the short-term, there might be a minor correction towards $7,400 or $7,320, but the bulls are likely to remain in action.
On the upside, Bitcoin is facing hurdles near the $7,600 level. A clear break above the $7,600 barrier might open the doors for another push towards the $7,800 level. The next key resistance is near the $7,880 level.