Bitcoin is correcting losses from the $8,400 region against the US Dollar. It seems like BTC price is likely to extend its recovery above the $9,000 in the coming sessions.

• Bitcoin is up more than 2% and it recovered above the $8,800 resistance against the US Dollar.
• The price is now testing the last swing high and a short term resistance near the $8,970 level.
• There was a break above a contracting triangle with resistance near $8,610 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is likely to accelerate its rise above the $8,970 and $9,000 resistance levels.

Bitcoin Gaining Traction

After forming a short term bottom near the $8,400 area, bitcoin started a decent recovery against the US Dollar. BTC price surpassed a couple of key hurdles near $8,600, $8,620, 100 SMA to enter a positive zone.

The recovery wave was initiated after there was a break above a contracting triangle with resistance near $8,610 on the hourly chart of the BTC/USD pair. The pair gained traction and settled above $8,700 and the 100 hourly simple moving average.

Bitcoin Price

Bitcoin is up more than 2% and it recently tested the $8,970 swing high and a short term resistance. A high is formed near $8,967 and the price is currently correcting lower.

It is testing the 23.6% Fib retracement level of the recent recovery from the $8,397 low to $8,961 high. If there are more losses, the price could test the $8,700 support area and the 100 hourly simple moving average.

More importantly, the 50% Fib retracement level of the recent recovery from the $8,397 low to $8,961 high is near the $8,680 level to provide support.

On the upside, the $8,970 and $9,000 levels are key hurdles for the bulls. A successful break above the $9,000 resistance area is likely to set the pace for more upsides towards the $9,200 resistance area.

$9,000 as Key Hurdle

The $9,000 resistance area could play a major role in the next 2-3 sessions. If bitcoin fails to climb above $8,970 and $9,000, there is a risk of a fresh decline.

The main support is near the $8,680 level, below which there is a risk of a sharp drop towards the $8,400 region. Any further losses may perhaps lead the price towards the crucial $8,200 support area.

Technical indicators:

Hourly MACD – The MACD is now moving back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 50 level.

Major Support Levels – $8,680 followed by $8,400.

Major Resistance Levels – $8,970, $9,000 and $9,200.