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Here’s Why Bitcoin Bulls Must Wait For Dip To $8.3K For Another Rally

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Bitcoin extended its rally above the $8,800 resistance against the US Dollar. However, BTC price might now correct lower towards $8,400 or $8,300 before a fresh increase.Bitcoin price climbed to a new 2020 high at $8,898 against the US Dollar.The price is now showing signs of a downside correction below $8,700 and $8,600.There is a key bullish trend line forming with support near $8,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair is likely to find a strong support near $8,400 or $8,300 if it dips further.Bitcoin Rally Pauses But Not Likely OverYesterday, bitcoin started a nice uptrend above the $8,200 and $8,400 resistance levels against the US Dollar. Later, BTC price traded in a range before rallying again above the $8,500 and $8,600 resistance levels.Moreover, the price jumped above the $8,800 level (as discussed yesterday) and settled nicely above the 100 hourly simple moving average. A new 2020 high is formed near $8,898 and the price is currently correcting lower.It already broke the 23.6% Fib retracement level of the recent surge from the $8,038 low to $8,898 high. An initial support on the downside is near the $8,600 and $8,620 levels.The next support could be $8,460 or the 50% Fib retracement level of the recent surge from the $8,038 low to $8,898 high. The main support and buy zone could be near the $8,400 and $8,300 levels.Bitcoin PriceBitcoin PriceAdditionally, there is a key bullish trend line forming with support near $8,300 on the hourly chart of the BTC/USD pair. Therefore, dips in bitcoin towards the $8,400 and $8,300 may perhaps find solid bids.Can BTC Rise To $9,200?The current trend is very positive and the recent break above $8,600 was convincing. In the short term, there might be a downside correction towards $8,400.Once a correction phase is complete, BTC bulls are likely to make another attempt to clear the $8,800 and $9,000 resistance. The main hurdle for a larger move towards $10,000 is near the $9,200 level.If bitcoin price fails to clear $9,000 and $9,200, it is likely to start a larger decline towards the $7,200 and $7,000 support levels in the coming days.Technical indicators:Hourly MACD – The MACD is now back in the bearish zone, with negative signs.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below 60 and it is likely to extend its decline.Major Support Levels – $8,460 followed by $8,300.Major Resistance Levels – $8,700, $8,800 and $9,000.

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