$8K In Reach? 4 Barriers Await Emboldened Bitcoin Bulls

As the trading range tightens and the technical indicators regain composure, the probability of bullish continuation increases.

At press time, the CoinDesk Bitcoin Price Index shows bitcoin is changing hands at $$7484.

Bitcoin has been in a clear consolidation mode since the conclusion of Tuesday's rally, but the daily bias remains bullish.

Price is sitting comfortably above the inverse head-and-shoulders neckline and three of the four important exponential moving averages are trending positively - maintaining the bullish view.

A bullish rally will not be an easy feat however since heavy resistance lies in the $7,600-$7,800 range.

While the RSI is capable of reaching much higher levels, a level of just 70 halted the previous substantial bullish rally in April.

The pennant formation supplemented by price sitting above all four hourly EMAs and the 0.382 Fibonacci Retracement, as well as the hourly RSI beginning to trend upwards, creates a rather clear short-term bullish bias.

A bullish rally would first likely test the larger pennant resistance followed by the upper boundary of the resistance zone mentioned in the daily chart, $7874.

The short-term bullish view will only be negated if price finds acceptance below the inverse head-and-shoulders neckline of $7,838.

Article Update: While publishing this analysis, the hourly pennant pattern shown above broke bullish and the price of bitcoin rose to $7657.