Bitcoin back above the $8000 level as support at $7450 did a good job of basing the digital currency this week

Bitcoin back above the $8000 level as support at $7450 did a good job of basing the digital currency this week Author: Greg Michalowski | Category: Cryptocurrency

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Above 100 hour MA at $7880..

Back on Tuesday, I outlined the $7450 area as a support area.

It was home to swing lows from mid-May, and was near the 38.2% retracement of the move up from the April 26 low.
Bitcoin found support at $7450 area this week...
On Wednesday, the price dipped quickly to $7428 before a modest bounce took it toward $8000. A final retest of the $7450 was made yesterday (low bottomed right at $7450). It held and the price is now higher. Currently, the digital currency is up $405 and $8090.
The move higher has taken the price above the natural $8000 hurdle AND is also above the 100 hour MA (blue line) currently at $7880.33. The 200 hour MA is the next Topside hurdle at $8210.
Staying above the 100 hour MA and extending above the 200 hour MA (and staying above), would have more traders looking at the last run lower as a simple 38.2% retracement into prior support. The $8400 would be the next target, followed by prior highs at $8834 and then up to the $9090 high for 2019 .
There is one warning.
The fall to the earlier lows and bounce, could be setting the technicals up for a head and shoulders formation. So just be aware. A move back below the 100 bar MA (or a failure on the break of the 200 hour MA), would be a potential clue that a break of the neckline may be in the cards instead. Be aware, but for now, the bulls are taking back some control.
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