Bitcoin (BTC) back on recovery track, trades above $8,000

• Bitcoin managed to recover above $8,000, but the upside momentum is fading.
• Critical resistance is created by SMA200 on a daily chart.

Bitcoin (BTC) bulls engineers a nice recovery off the recent lows and managed to take BTC price back above $8,000. BTC/USD touched an intraday high at $8,069 and retreated to $8,050 by press time. Despite the correction, the coin retains bullish bias on the intraday timeframes as long as it stays above $8,000.

Bitcoin’s technical picture

Looking technically, the next strong resistance is created by SMA50 (Simple Moving Average) on the one-hour chart (currently at $8,100). Once it is out of the way, the upside is likely to gain traction with the next focus on $8,150 (the middle line of four-hour Bollinger Band and $8,200 (SMA100 on four-hour and one-hour timeframes, closely followed by the middle line of the Bollinger Band on a daily chart).

From a longer-term perspective, we still need to see a sustainable move above SMA200 daily ($8,780) to claim the recovery is in place.  

On the downside, the initial support is created on approach to $8,000, followed by the recent low of $7,912. If it is broken, the sell-off may be extended towards $7,880 ( the lower line of  Bollinger Band on a daily chart), and $7,800. This area stopped the decline on several occasions since the end of September.

BTC/USD, one-hour chart