Bitcoin inching closer to $8,000: Eyes on $8,500

Bitcoin is still lagging the breakout from the inverted head-and-shoulders pattern we discussed in earlier published price analysis. However, at some point today, BTC/USD recovered above $8,000 but was unable to find support above this level. Impressively, the retracement is holding ground at the current value, $7,966. $8,000 is now the initial resistance at $8,000 while as has been mentioned several times before $8,200 is a critical breakout position.

The delayed reaction to the inverted head-and-shoulders pattern will launch Bitcoin into another formidable journey of breaking barriers to the upside. Besides, the bulls have eyes on $8,500 above the current high at $8,384.

As far as technical levels are concerned, Bitcoin is still strongly bullish and only lacks a catalyst to sustain growth above $8,000. The 100 Simple Moving Average (SMA) 1-hour is offering support at $7,866.82 just slightly above the key support zone at $7,600 - $7,800.

Looking at the chart, the Relative Strength Index (RSI) has slowed down after recovering from the levels close to 30.00. The indicator shows a possible side trading move in the near-term. The same move is emphasized by the Moving Average Convergence Divergence (MACD) which is currently holding tight to the mean line.

BTC/USD 1-hour chart