Bitcoin Defies Gravity But Here Is Why It Could Correct In Short-Term

Bitcoin surged more than 5% to climb above the $7,700 and $7,800 resistance levels against the US Dollar. BTC price tested the $8,000 barrier and it could correct lower in the short term.Bitcoin price traded to a new 2020 high close to the $8,000 mark against the US Dollar.Despite all hurdles near $7,700 and $7,800, the bulls were able to gain strength.There was a break above a major contracting triangle with resistance near $7,620 on the hourly chart of the BTC/USD pair (data feed from Kraken).A short term correction is likely towards the $7,750 and $7,680 support levels.Bitcoin Tops Near $8,000Yesterday, we discussed the chances of bitcoin rising towards the $7,800 and $8,000 resistance levels against the US Dollar. BTC overcame all hurdles and was able to climb above the $7,800 resistance area.Besides, there was a close above the $7,700 pivot level and the 100 hourly simple moving average. More importantly, there was a break above a major contracting triangle with resistance near $7,620 on the hourly chart of the BTC/USD pair.The pair rallied towards the $8,000 resistance, where sellers emerged. A new 2020 high is formed near $7,990 and the price is currently correcting lower. It traded below the 23.6% Fib retracement level of the recent rally from the $7,486 low to $7,990 high.On the downside, an initial support is near the $7,800 area. However, the first key support is near the $7,740 level. Moreover, the 50% Fib retracement level of the recent rally from the $7,486 low to $7,990 high is also near the $7,740 level.If there is an extended downside correction, bitcoin price might test the $7,680 support. Any further downsides might discourage the bulls and the price could dip towards the $7,580 support area.Chances of Another Upward Move in BTCIt seems like BTC stalled close to the key $8,000 resistance area. Therefore, a short term correction cannot be ignored below the $7,800 area.Having said that, the price is likely to find bids near $7,740 or $7,680. Later, it could consolidate for a couple of sessions before another rise towards $8,000 or even $8,150.Bitcoin PriceLooking at the chart, bitcoin price is likely to correct lower towards $7,680 before a fresh increase. Only if it settles below $7,500, the bears could take control and the price might drop to $7,000.Technical indicators:Hourly MACD – The MACD is slowly reducing its bullish slope.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower from the 80 zone.Major Support Levels – $7,740 followed by $7,680.Major Resistance Levels – $7,980, $8,000 and $8,150.

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