Bitcoin (BTC) Price Flirts With Key Resistance After Recent Rally

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price climbed higher sharply above $10,200 and gained around 5% against the US Dollar.
The price is clearly struggling to gain strength above the key $10,500 resistance area.
There was a break above a key bearish trend line with resistance near $10,270 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is correcting gains and it is testing the broken trend line and the $10,250 support.

Bitcoin price is showing signs of a decent recovery above $10,200 against the US Dollar. However, BTC is still trading well below the main $10,500 resistance area.

Bitcoin Price Analysis

After forming a decent support near $9,900, BTC started an upside correction against the US Dollar. The price traded above the $10,000 and $10,200 resistance levels to move into a short term positive zone. Moreover, there was a break above the $10,300 level and the 100 hourly simple moving average. However, the price struggled to gain momentum above the key $10,500 resistance level (as discussed in the weekly forecast).

During the rise, there was a break above a key bearish trend line with resistance near $10,270 on the hourly chart of the BTC/USD pair. Bitcoin spiked towards the $10,700 level and formed a swing high near $10,697. At the moment, the price is correcting lower and is trading well below $10,500. It broke the $10,400 level and tested the 50% Fib retracement level of the recent rise from the $9,914 low to $10,697 high.

It seems like the $10,250 level and the broken trend line is acting as a support. The next key support is near the $10,200 level. It represents the 61.8% Fib retracement level of the recent rise from the $9,914 low to $10,697 high. The main support is near the $10,100 level and the 100 hourly simple moving average. If the price fails to recover again, there could be a fresh decline towards the $10,000 and $9,900 levels.

On the upside, the price must settle above $10,500 to gain bullish momentum. In the mentioned case, the next stop for the bulls could be $10,700 and $10,800. However, if the price accelerates above $10,500, it could aim to test the $11,000 level.

Looking at the chart, bitcoin price is clearly struggling near the $10,500 resistance. Therefore, if there is a downside break below the $10,200 support, the price is likely to revisit the $9,900 and $9,800 support levels.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.

Major Support Levels – $10,250 followed by $10,000.

Major Resistance Levels – $10,400, $10,500 and $10,680.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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