Bitcoin price started a downside correction after rallying to a new 2020 high near $8,460 against the US Dollar. BTC corrected $500, but the price is still above many key supports.
- Bitcoin failed to continue above $8,500 and started a downside correction against the US Dollar.
- There was a significant correction below the $8,200 and $8,080 support levels.
- There is a connecting bullish trend line active with support near $7,930 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to bounce back as long as it is above the $7,800 support and the 100 hourly SMA.
Bitcoin Correcting Gains
This week, we saw a strong rise in bitcoin price above the $8,000 resistance against the US Dollar. BTC traded to a new 2020 high near $8,460 before it started a downside correction.
The bears were able to push the price below the $8,300 and $8,200 levels. During the decline, there was a break below a key bullish trend line with support near $8,040 on the hourly chart.What Could Invalidate Bullish Trend In BTC?
On the downside, there are a couple of key supports for bitcoin near the $7,800 level. More importantly, the 100 hourly simple moving average is near $7,800.
Therefore, a successful bearish close below $7,800 might invalidate the current bullish view. In the mentioned case, the price is likely to revisit the $7,500 support.
