After a major decline below $10,000, bitcoin price found support above $9,100 against the US Dollar. The BTC/USD pair formed a decent support base above the $9,500 level and recently started a strong recovery. Besides, it broke the key $10,000 resistance to move into a positive zone. Finally, the upward move was such that the price even traded above $10,200 and the 100 hourly simple moving average.
Moreover, the price broke the $10,500 resistance and traded close to the $10,800 level. A swing high was formed near $10,807 and the price started consolidating gains. It corrected below the 23.6% Fib retracement level of the upside move from the $9,253 low to $10,807 high. Additionally, the price even spiked below the $10,400 support level. However, the decline was protected by the $10,200 support and the 100 hourly simple moving average.
At the outset, there is a contracting triangle forming with resistance near $10,700 on the hourly chart of the BTC/USD pair. Therefore, if there is an upside break above the $10,700 and $10,800 resistance levels, the price could continue to rise. The next target for the bulls could be $11,000, above which it could even surge above the $11,200 level. On the downside, a break below $10,440 might push the price towards the $10,200 support.
The next main support is near the $10,000 level. Moreover, the 50% Fib retracement level of the upside move from the $9,253 low to $10,807 high is also above the $10,000 support area. Therefore, a daily close below $10,000 might start a major decline in bitcoin price in the near term.
Looking at the chart, bitcoin price is trading with a positive bias above the $10,200 and $10,000 support levels. As long as the price is above $10,000, it could continue to rise. Overall, the main target for the bulls could be $11,000 and $11,200.
Hourly MACD – The MACD is slowly moving back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving higher towards the 65 level.
Major Support Levels – $10,400 followed by $10,200.
Major Resistance Levels – $10,800, $11,000 and $11,200.
Author: Aayush Jindal