Bitcoin – BTCUSD price consolidates above the 8,000 mark for the third consecutive trading day. Bitcoin keeps the gains after the rally from the 7,300 region on January 6th. Today BTCUSD gives up 1.43% at 8,064 with the capitalization at 147.53 billion.
The short term consolidation between the 8,000 and 8,200 might continue for some trading days before a break, with the odds pointing to a break higher. The momentum is positive for the number one cryptocurrency as long as the price trades above the 100-day moving average.
Looking at the daily chart, BTCUSD after spending one month consolidating around the 7,000 mark, managed to break higher. The bullish momentum enhanced after the crypto pair managed to break above the 50-day moving average. For an extension of the recent rally bitcoin needs to hold above the 8,000 and make a credible break above the 8,200 level.
On the upside bitcoin will meet the first resistance at $8,196 the daily high. A break above might target the next resistance at $8,460 the high from January 8th. Bulls will gain control of bitcoin in case of the price breaks above the 200-day moving average at $9,100.
On the downside, intraday support for BTCUSD stands at $8,039 the daily low. If bitcoin breaks that level the next support will be met at $8,000 psychological level. A break below might challenge the low from January 10th at 7,670.