Bitcoin is recovering and showing positive signs above the $9,700 level against the US Dollar. BTC price is likely to accelerate higher above $10,000 as long as it is above the 100 hourly SMA.
- Bitcoin is correcting higher and it recently cleared the $9,740 resistance zone.
- The price even broke the $9,800 level and it traded as high as $9,884.
- There is a bullish continuation pattern forming with resistance near $9,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could surge above $9,880 and $9,950 as long as it is above the $9,680 support.
Bitcoin Price Could Rally Again
After forming a decent support base above $9,400, bitcoin price started a fresh increase against the US Dollar. BTC broke traded above the $9,600 and $9,740 resistance levels to move into a positive zone.
It even settled above the $9,700 level and the 100 hourly simple moving average. Moreover, there was a break above a key bearish trend line at $9,690 on the hourly of the BTC/USD pair.
It opened the doors for more gains and the price traded as high as $9,884. Bitcoin is currently consolidating gains and trading near the $9,800 level. It tested the 23.6% Fib retracement level of the recent wave from the $9,469 low to $9,884 high.
There is also a bullish continuation pattern forming with resistance near $9,850 on the same chart. If there is an upside break above the triangle resistance, the price could accelerate above the $9,900 and $9,950 levels.
The first major resistance is near the $10,000 level, above which there are chances of more upsides towards the $10,400 and $10,500 resistance levels in the near term.
Fresh Decline in BTC?
On the downside, the first key support is near the triangle trend line at $9,780. If bitcoin price fails to break higher, it could correct lower below $9,780. The next major support is seen near the $9,680 level and the 100 hourly simple moving average.
The 50% Fib retracement level of the recent wave from the $9,469 low to $9,884 high is also near $9,677. Any further losses may perhaps negate the current bullish view and the price could dive towards the $9,400 support zone.
Technical indicators:
Hourly MACD – The MACD is struggling to gain bullish momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now moving nicely above the 50 level.
Major Support Levels – $9,780 followed by $9,680.
Major Resistance Levels – $9,880, $9,950 and $10,000.