Earlier this morning, Bitcoin price returned above $8,000 following a slight dip below that price level on Tuesday evening. BTC/USD has been holding steady this week as investors await the next potential breakout. For the past two weeks, Bitcoin gained close to 20%.
BTC/USD Showing Strength
Despite falling below $8,000, Bitcoin price bounced back quickly on Wednesday morning. The slight price dip was likely a result of a “whale dumping” of over $50 million worth of cryptocurrency in one transaction on the Bitfinex exchange. The fact that New York’s attorney general may take a closer look at major cryptocurrency exchanges operating in the state may have also had an effect.[1]
However, Bitcoin price has shown enough strength to hold above $8,000 this week, as it twice managed to quickly rebound from dips below that price level for the past three days. Earlier in the day, BTC/USD took as little as one hour to recover from a sudden plunge from $8,000.
For now, BTC/USD has at least established a support level at $7,800, while a resistance of $8,200 is set to be tested. The coin is also trading just below its 20-day moving average. This means that BTC/USD is still in bullish territory. Realistically, investors could see Bitcoin reach $8,400 later this week, while a strong support level means any downside would take it back to $7,800.
Source: Tradingview[2]
On the technical side, both the MACD and RSI are sending bullish signals, as seen by the MACD line crossover and an RSI score rising above 50. Volume has also picked up during recent hours.
Looking at the Technical Indicators:
- Hourly MACD & RSI — Bitcoin is in bullish zone
