Bitcoin On The Brink Of Massive Rally And Only 1 Thing Is Holding It Back

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is climbing steadily above $8,800 and $9,000 against the US Dollar. BTC price could start a massive rally towards $10K and $11K if there is a daily close above $9,300.

Bitcoin price is gaining momentum above the $9,000 resistance area against the US Dollar.
A new 2020 high is formed near $9,185 and the price could continue to rise.
There was a break above a crucial declining channel with resistance near $8,475 on the daily chart of the BTC/USD pair (data feed from Kraken).
The pair is now facing a significant resistance near $9,300, above which it could test $10,000.

Bitcoin Price Could Revisit $10K Soon

In the past few days, there were steady gains in bitcoin above the $8,000 and $8,200 resistance levels. The recent rise gained pace after BTC surpassed the $8,500 resistance area.

The daily chart suggests that the price broke many important hurdles near $8,400 and $8,500 to enter a positive zone. The first main hurdle was the 50% Fib retracement level of the downward move from the $10,579 high to $6,423 low.

More importantly, there was a break above a crucial declining channel with resistance near $8,475 on the daily chart of the BTC/USD pair. Bitcoin price settled above the $8,500 resistance and the 100-day simple moving average.

It is now trading near the 61.8% Fib retracement level of the downward move from the $10,579 high to $6,423 low. It seems like the bulls are facing a crucial resistance near the $9,300 level (acted as a support and resistance on many occasions).

Therefore, bitcoin needs to settle above the $9,300 area to continue higher. A successful daily close above the $9,300 resistance could open the doors for another rally towards the $10,000 and $11,000 levels in the coming days.

What If BTC Fails Near $9,300?

As stated, the $9,300 resistance area holds a lot of importance. If BTC price fails to surpass $9,300, it could start a downside correction.

An initial support is near the $8,500 level (the recent breakout zone). However, the main support for the bulls and the current uptrend is near the $8,000 level. Additionally, the 100-day SMA is near the $8,000 level.

Hence, a daily close below $8,000 might lead the price towards the $7,200 and $7,000 support levels. Overall, bitcoin price must climb above $9,300 to continue higher towards $10,000 and $11,000. If not, it could correct towards $8,000 or even $7,200.

Technical indicators:

Daily MACD – The MACD is slowly gaining momentum in the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for BTC/USD is slowly moving into the overbought zone.

Major Support Levels – $8,500 followed by $8,000.

Major Resistance Levels – $9,300, $10,000 and $10,550.

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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