Do or Die For Bitcoin Bulls: Here’s What Could Trigger Short Term Rebound

Bitcoin is facing a crucial resistance near $ 8,200 against the US Dollar (as discussed yesterday). BTC price could trade in a range for a few sessions before the next move. Bitcoin is trading in a bearish zone below the $ 8,200 resistance area against the US Dollar. The bulls are putting up a fight to defend the $ 7,800 and $ 7,700 support levels. There is a key contracting triangle forming with resistance near $ 7,950 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could make another attempt to surpass the main $ 8,200 resistance area in the near term. Bitcoin is Facing Hurdles Yesterday, we discussed the chances of a short term recovery in bitcoin towards the $ 8,200 resistance area against the US Dollar. BTC price did start an upward move above the $ 8,000 and $ 8,100 levels. However, the price failed to gain strength above the $ 8,180 and $ 8,200 resistance levels. A swing high was formed near $ 8,165 and the price remained well below the 100 hourly simple moving average. It trimmed gains and tested the $ 7,700 support area. At the moment, bitcoin price seems to be trading in a contracting range below $ 8,000. The last swing high was near $ 8,034 before the price declined below the 23.6% Fib retracement level of the recent leg from the $ 7,728 low to $ 8,034 high. On the downside, an initial support is near the $ 7,880 level. It is close to the 50% Fib retracement level of the recent leg from the $ 7,728 low to $ 8,034 high. More importantly, there is a key contracting triangle forming with resistance near $ 7,950 on the hourly chart of the BTC/USD pair. If there is an upside break above the $ 7,950 and $ 8,000 levels, the price could make another attempt to surpass the main $ 8,200 resistance area in the near term. Bitcoin Price If the bulls succeed in gaining strength above the $ 8,200 resistance area, the price may perhaps start a short term recovery towards the $ 8,500 and $ 8,600 levels. Fresh Decline? If bitcoin fails to continue above the $ 8,000 pivot level or the $ 8,200 resistance zone, there is a risk of a fresh decline in the coming sessions. An initial support is near the $ 7,640 level, below which the price is likely to dive towards the main $ 7,500 support area (as discussed using the daily chart). Technical indicators: Hourly MACD – The MACD is slowly moving in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently flat near the 45 level. Major Support Levels – $ 7,800 followed by $ 7,640. Major Resistance Levels – $ 8,000, $ 8,200 and $ 8,500.
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