Bitcoin extended its rally above the $9,200 resistance against the US Dollar. BTC tagged the $9,400 area and now it could correct lower towards $8,800 or $8,500.
- Bitcoin price is approaching a couple of key resistances near $9,500 against the US Dollar.
- There could be a short term downside correction from $9,400 or $9,500 in the coming sessions.
- Yesterday’s major bullish trend line is still active with support near $9,040 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- Ethereum is lagging, but it could rally if there is a clear break above the $180 resistance.
Bitcoin Price Approaching Key Resistance
Yesterday, we saw a strong rise in bitcoin above the $9,000 resistance. We even discussed the chances of more upsides towards $9,500, considering a successful close above the $9,000 level and the 100 hourly simple moving average.
BTC price did continue higher above the $9,200 resistance and a connecting bearish trend line on the hourly chart. Finally, the price tested the $9,400 area. A new 2020 high is formed near $9,426 and the price is currently consolidating gains.
It is testing the 23.6% Fib retracement level of the recent rally from the $8,874 low to $9,426 high. On the upside, an initial resistance is near the $9,400 level.
However, the main resistance is near the $9,500 level, where bitcoin bulls need to be very careful. If there is a strong rejection near $9,500, the price could start a substantial downside correction. The first key support on the downside is near the $9,150 level.
Besides, the 50% Fib retracement level of the recent rally from the $8,874 low to $9,426 high is near $9,150. More importantly, yesterday’s major bullish trend line is still active with support near $9,040 on the hourly of the BTC/USD pair.
Therefore, a downside break below $9,000 might lead bitcoin price towards the $8,800 support area or the 100 hourly simple moving average.
What If BTC Surges Above $9,500?
We cannot discard the fact that BTC bears might fail to protect $9,500. In the mentioned case, the price is likely to surge towards the $10,000 handle.
Any further upsides could open the doors for a larger upward move towards the $11,200, $11,500 and $12,000 levels in the coming days.
Technical indicators:
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting from the 75 level.
Major Support Levels – $9,150 followed by $9,000.
Major Resistance Levels – $9,400, $9,425 and $9,500.