Bitcoin Persists in Battle to Reclaim Crucial $8,000 Resistance Level

A definitive breakout above this level could indicate that the price has begun a new upward trend.

Bitcoin’s Ascending Channels

The Bitcoin price is trading inside an ascending channel since April 23. At the time of writing, it was just above the midpoint (EQ) of the channel. The price hasn’t really traded in the lower portion of this channel since touching the support line on April 26. Besides the EQ, the price has also found support above the 50-hour moving average (MA). As long as it is staying above these supports, its outlook is considered bullish. In this scenario, the price is expected to either continue increasing at the rate predicted by the channel or possibly break out.

Long-Term Ascending Channel

Interestingly, the price is also trading inside a longer-term ascending channel, one that has been in place since March 20. The price reached the support line on this channel on April 20, and has been increasing since. The price is approaching a confluence of resistance levels, created by the:

• 200-day MA
• 0.786 Fibonacci level of the previous decrease
• Resistance line of the channel
• Minor resistance area

Therefore, this would be a very suitable place for a reversal either towards the support line of the channel or even cause a more severe breakdown. On the other hand, a breakout above this level would also indicate a breakout from the channel. This would suggest that the current movement beginning at the March 14 low is not a retracement, but rather a new upward trend. To conclude, the Bitcoin price is trading inside an ascending channel. It is approaching a very significant resistance level at $8,000. A breakout above this resistance could indicate that the price has begun a new upward trend. However, it seems more likely that the price will first get knocked back towards the support line of the channel. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.