Bitcoin price is gaining bullish momentum and it recently traded above $7,900. BTC/USD is likely to break the $8,000 resistance and trade towards the $8,200 level in coming sessions.
Earlier this week, the bitcoin price started a steady rise above resistance at $7,640. BTC/USD made a few attempts to clear the $7,775 and $7,800 resistance levels, and the bulls finally succeeded.
Looking at the 1-hour chart, the price broke the $7,800 resistance area and settled well above the 25 SMA (1-hour, orange). It swung low to towards $7,701 before surging above $7,800.
The bitcoin price surpassed a major ascending channel with resistance near $7,900 on the same chart. A new weekly high formed above $7,935 and the price is currently showing positive signs.
Immediate resistance is near $7,980 and $8,000. The current price action is suggesting an easy upside break above the $8,000 resistance level. In that case, the price is likely to climb towards the next hurdle at $8,200.
If there is a downside correction, $7,900 or $7,880 might provide support. The latter one is the 23.6% Fib retracement level of the recent surge from $7,701 to $7,937.
However, the first major support is near $7,820 since it’s close to the 50% Fib retracement level of the recent rise from $7,701 to $7,937. Any further losses may perhaps lead Bitcoin towards support at $7,750 or the 25 SMA (1-hour, orange).
Overall, the bitcoin price is gaining traction and is likely to rally further towards $8,200.