Bitcoin doesn’t change its price dramatically, as it just stays on the current position, fluctuating around the 8,000 USD value and trading at 7,998.37 USD as of 11:15 a.m. ET. Bitcoin has been on a parabolic bullish rally for quite a while, which was followed by sideways movement of the price. However, at press time, the pattern formed indicated an imminent correction.
The dominance of Bitcoin had reduced as the rally ceased and stood at 57%.
Bitcoin seems to be setting up for a monster bullish break above 8,300 USD in the near term. Bitcoin price is clearly forming a crucial breakout pattern with resistance near 8,200 USD.
The crypto market sentiment is quite bullish on Bitcoin and expects it to continue the rally, however, technical analysts and traders are awaiting a correction.
Crypto market recap
Cryptomarket is in correction today with major coins declining slightly.
Ethereum dropped by 0.72% to 249.99 USD, while XRP declined by 0.86% to 0.3837 USD. The decreases in Bitcoin Cash, Litecoin and EOS are up to 1%.
The biggest drop is registered by Binance Coin, which fell by 3.3% to 33.87 USD. The cryptocurrency traders and analysts consider that Binance Coin could face a “bloody correction” if anything goes wrong with the rollout of its margin trading feature.
However, the biggest gainer today is Bitcoin SV, which added over 16% to 105.95 USD. Among the winners today are TRON and Monero, which rose by 6% and 1%, respectively.
The total cryptocurrency market capitalization is 249.571 billion USD.
Bitcoin price analysis
This past week, bitcoin price corrected lower below 7,660 USD. Dips remain protected and the price recently bounced back above 7,600 USD and 7,800 USD. There was a strong upward move above the 8,000 USD level and the price remained well above the 100 simple moving average (SMA). The cryptocurrency tested the 8,200 USD resistance level and it is currently correcting gains.
The breakout is a short-term movement of price, however, on a longer time frame, the price is stuck in limbo, which explains the sideways movement.
More importantly, it seems like there is a crucial contracting triangle forming with resistance near 8,200 USD. If there is a downside break below the triangle support at 7,840 USD, the price could test the 7,600 USD support. The 100 SMA is also near the 7,600 USD level. If there is an upside break above the 8,200 USD resistance, the price could start a strong rally. The next immediate resistance is at 8,300 USD, above which the next target might be 8,500 USD or 8,800 USD.
The next immediate resistance is at 8,300 USD, above which the next target might be 8,500 USD or 8,800 USD.
There is an ascending trend channel being formed on Bitcoin’s daily chart, which is a strong continuation chart pattern. Besides, the price is perfectly confined within the trendlines of this channel, and the next implied price target is located at 11,500 USD. The two intermediate price targets are located at significant resistance levels at 8,500 USD and 9,500 USD.
Positive dynamics in fundamental variables of the Bitcoin network, such as continuing growth in the number of daily transactions and the number of active wallets, reinforces and confirms an upward trend forecast for Bitcoin’s market price.