Bitcoin reversed after a sharp dip towards the $8,400 support area against the US Dollar. BTC price is now signaling more upsides above $8,800 and $9,000 in the coming sessions.
- Bitcoin price bounced sharply and formed a bullish engulfing pattern above $8,550 against the US Dollar.
- The bulls are likely to take control once the price surpasses the $8,800 resistance area.
- There was a break above a key declining channel with resistance near $8,665 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might dip a few points, but a break above the $8,800 resistance area is very likely.
Bitcoin Forming Bullish Candlestick Pattern
Recently, there was a sharp dip in bitcoin from the $8,750 area against the US Dollar. BTC price spiked below a couple of important supports, but it bounced back above $8,500.As a result, there was a strong bullish engulfing pattern formed on the hourly chart and the price settled above the $8,500 support area. The recent increase was technically significant, suggesting the bulls rejected the $8,500 support.
It is currently testing the 100 hourly simple moving average and struggling to gain strength above $8,780-$8,800. If there is a clear break above the $8,800 resistance and the 100 hourly SMA, bitcoin is likely to accelerate higher.
In the mentioned bullish case, an initial target could be $9,000. A successful follow through above the $9,000 resistance might start a strong rise towards the $9,200 and $9,300 resistance levels.Any further gains may perhaps start a larger upward move above towards the $10,000 and $11,000 levels in the coming days.