Bitcoin price corrected lower recently and tested the $8,425 support against the US Dollar.The price bounced back and it is currently trading above the $8,600 resistance area.There was a break above a key bearish trend line with resistance at $8,690 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair remains well supported on dips and it is likely to climb above $8,800 in the near term.Bitcoin price tested the key $8,425 support and the 100 hourly SMA against the US Dollar. BTC bounced back and it is currently gaining momentum above the $8,700 level.Bitcoin Price AnalysisYesterday, we saw the start of a downside correction in bitcoin price below $8,700 against the US Dollar. The BTC/USD pair traded below the $8,600 and $8,550 support levels. There was also a break below the $8,500 level. However, the $8,425 support level along with the 100 hourly simple moving average acted as a strong support (as discussed in yesterday’s analysis). Moreover, the 50% Fib retracement level of the upward move from the $7,905 low to $8,950 swing high also acted as a support.As a result, the price bounced back sharply above the $8,600 and $8,700 resistance levels. Besides, there was a break above the 50% Fib retracement level of the drop from the $8,955 high to $8,433 swing low. More importantly, there was a break above a key bearish trend line with resistance at $8,690 on the hourly chart of the BTC/USD pair. The pair is now trading above the $8,700 resistance. Moreover, it is testing the 61.8% Fib retracement level of the drop from the $8,955 high to $8,433 swing low.In the short term, there could be a downside correction, but the broken trend line is likely to act as a support near $8,680. Below the $8,680 support, the next key support is near the $8,600 level and the 100 hourly simple moving average. As long as the price is above the 100 hourly simple moving average, there are chances of more gains above the $8,750 and $8,800 resistance levels.Looking at the chart, bitcoin price bounced back and completed a downside correction near $8,425. However, it must gain momentum above the $8,800 barrier to continue higher. The next important resistance is near $8,900. Above this, the price is likely to test the major $9,000 handle in the coming sessions.Technical indicators:Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level and it might continue higher towards 65.Major Support Levels – $8,680 followed by $8,600.Major Resistance Levels – $8,750, $8,800 and $8,900.
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