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Bitcoin corrected lower, but it remained well bid above the $9,300 level against the US Dollar. BTC is currently consolidating and preparing for the next key break.
- Bitcoin is facing a couple of key hurdles near the $9,700 and $9,800 levels.
- The price is likely to find a strong support near the $9,400 level and the 100 simple moving average (4-hours).
- There is a crucial contracting triangle forming with resistance near $9,700 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to surge towards $10,000 if there is a clear break above the $9,700 level.
Bitcoin Remains In Uptrend
This past week, bitcoin started a downside correction from the $10,360 zone against the US Dollar. BTC price broke the $10,000 support zone and it even spiked below the $9,500 support.
However, the bulls were able to protect the $9,300 region and the 100 simple moving average (4-hours). A low is formed near the $9,308 level and it recently started a fresh increase.
There was a break above the 23.6% Fib retracement level of the downward move from the $10,361 high to $9,308 low. Bitcoin even climbed above the $9,500 and $9,600 levels. On the upside, the $9,800 zone seems to be acting as a strong barrier.
The 50% Fib retracement level of the downward move from the $10,361 high to $9,308 low also prevented more upsides. The price is now trading in a range above the $9,600 level.
There is also a crucial contracting triangle forming with resistance near $9,700 on the 4-hours chart of the BTC/USD pair. If there is a clear break above the triangle resistance near $9,700 and then $9,800, the price could accelerate higher towards $10,000.
Any further gains could open the doors for a larger upward move towards the $10,200 and $10,300 levels in the near term.
Downsides Could be Limited in BTC
If bitcoin breaks the triangle support zone, it could correct again below the $9,500 level. The first major support is near the $9,400 level and the 100 simple moving average (4-hours).
The main support is near the $9,300 level, below which the bears are likely to gain strength and the price might dive towards the $8,800 level.
Technical indicators
4 hours MACD – The MACD for BTC/USD is about to move into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently nicely above the 50 level.
Major Support Level – $9,300
Major Resistance Level – $9,800
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