Bitcoin Price (BTC) Breaks Key Resistance But Can It Continue Higher?
- Bitcoin price formed a strong support near the $9,500 level and recently recovered against the US Dollar.
- The price broke the key $9,800 and $10,000 resistance levels to move into a positive zone.
- This week’s highlighted major bearish trend line was breached with resistance near $9,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The price is currently struggling to gain momentum above $10,200 and the 100 hourly SMA.
Bitcoin price is trading with a positive bias above the $10,000 resistance against the US Dollar, just like Ethereum and ripple. However, BTC price must surpass the $10,200 resistance to continue higher in the near term.
Bitcoin Price Analysis
In the past three days, there was a significant decline in bitcoin price below the $10,000 support against the US Dollar. The BTC/USD pair traded close to the $9,500 level before the bulls took a stand. A swing low was formed at $9,498 and the price is currently correcting higher. It broke many important resistance near the $9,700 and $9,800 levels. Moreover, there was a break above the 23.6% Fib retracement level of the downward move from the $11,200 swing high to $9,500 swing low.
Additionally, this week’s highlighted major bearish trend line was breached with resistance near $9,900 on the hourly chart of the BTC/USD pair. The pair traded above the key $10,000 resistance level. However, the upward move was capped by the $10,200 level and the 100 hourly simple moving average. Besides, the 50% Fib retracement level of the downward move from the $11,200 swing high to $9,500 swing low is also waiting near the $10,350 level.
Therefore, the price must break the $10,200 resistance and gain pace above $10,350 to continue higher. The next important resistance is near the $10,800 level. It represents the 76.4% Fib retracement level of the downward move from the $11,200 swing high to $9,500 swing low.
Conversely, if the price fails to surpass the $10,200 resistance and the 100 hourly SMA, there could be a bearish reaction. An immediate support is near the $10,000 level, below which the price could revisit the $9,800 support area. Moreover, if there are more losses, the price may perhaps break the $9,500 support and extend losses in the near term.
Looking at the chart, bitcoin price is clearly trading near a crucial resistance at $10,200. If there is an upside break, the price could continue to rise towards $10,500 and $10,800. If not, the price could revisit $9,500.
Hourly MACD – The MACD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level, with correction signs.
Major Support Levels – $10,000 followed by $9,800.
Major Resistance Levels – $10,200, $10,350 and $10,800.