Bitcoin price has started an upside correction above the $8,700 barrier. BTC/USD could continue to recover if there is a clear break above $8,965 and $9,040.
After forming a base near the $8,460 level, the bitcoin price started an upside correction above $8,580. BTC/USD recovered nicely and recently climbed above the key $8,700 resistance area.
Looking at the 1-hour chart, the price even surpassed the resistance at $8,840 and settled nicely above the 25 simple moving average (1-hour, orange). It tested the $8,975 and $8,990 resistance levels, where the bears emerged.
A high is formed near the $8,992 level and the price is currently trimming gains. Initial support is near the $8,850 level and the 23.6% Fib retracement level of the recent wave from the $8,460 low to $8,992 high.
Moreover, the bitcoin price is trading near $8,850 and a connecting bullish trend line with support near $8,860 on the 1-hour chart. The trend line support at $8,860 is also close to the 25 simple moving average (1-hour, orange).
If there is a downside break below the trend line and the 25 simple moving average (1-hour, orange), the price could correct towards the $8,725 and $8,700 support levels.
The 50% Fib retracement level of the recent wave from the $8,460 low to $8,992 high is also waiting near the $8,725 level to act as decent support in the short term.
Any further losses may perhaps lead Bitcoin towards the $8,600 area. On the upside, the $8,975 and $8,990 levels are important hurdles for the price, above which it could rally towards the $9,180 level.