Bitcoin Price Rally Nears $80K, Dips May Draw Fresh Buyers

Bitcoin price started a fresh increase and cleared the $77,500 zone. BTC is consolidating and might aim for more gains above the $79,500 level.

• Bitcoin managed to stay above $76,500 and started a fresh increase.
• The price is trading above $77,200 and the 100 hourly simple moving average.
• There is a short-term declining channel forming with resistance at $78,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair might extend gains if it stays above the $77,150 and $76,650 levels.

Bitcoin price found support near $74,850 and started a fresh increase. BTC gained pace for a move above the $75,500 and $77,200 resistance levels.

The bulls even pushed the price above $78,500. A high was formed at $79,490, and the price is now correcting gains. There was a move below the 23.6% Fib retracement level of the upward move from the $74,850 swing low to the $79,490 high.

Bitcoin is now trading above $77,200 and the 100 hourly simple moving average. If the price remains stable above $77,000, it could attempt a fresh increase. Immediate resistance is near the $78,500 level. There is also a short-term declining channel forming with resistance at $78,500 on the hourly chart of the BTC/USD pair.

The first key resistance is near the $79,200 level. A close above the $79,200 resistance might send the price further higher. In the stated case, the price could rise and test the $79,500 resistance. Any more gains might send the price toward the $80,000 level. The next barrier for the bulls could be $82,000.

If Bitcoin fails to rise above the $78,500 resistance zone, it could start another decline. Immediate support is near the $77,700 level. The first major support is near the $77,150 level or the 50% Fib retracement level of the upward move from the $74,850 swing low to the $79,490 high.

The next support is now near the $76,650 zone. Any more losses might send the price toward the $75,500 support in the near term. The main support now sits at $75,000, below which BTC might struggle to recover in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $77,700, followed by $77,150.

Major Resistance Levels – $78,500 and $79,500.