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Bitcoin is gaining bullish momentum and it broke the $9,800 resistance zone against the US Dollar. BTC price is likely to continue higher if it settles above the $10,000 resistance zone.
- Bitcoin is slowly moving higher and it is trading above the $9,800 and $9,720 support levels.
- A successful daily close above the $10,000 level could spark a sharp rise in the near term.
- There was a break above a key contracting triangle with resistance near $9,780 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- There might be a short term correction, but the bulls are likely to protect $9,800 or $9,720.
Bitcoin Price Gaining Momentum
After consolidating in a range for many sessions, bitcoin price spiked above the $9,800 resistance against the US Dollar. BTC gained momentum above the $9,880 level and settled above the 100 hourly simple moving average.
During the rise, there was a break above a key contracting triangle with resistance near $9,780 on the hourly chart of the BTC/USD pair. It opened the doors for more gains above $9,950 level, but the bulls are still struggling to gain strength above the $10,000 resistance zone.
A high is formed near the $9,998 level and the price is currently correcting lower. It tested the $9,920 level or the 23.6% Fib retracement level of the recent surge from the $9,680 low to $9,998 high.
The first key support is seen near the $9,840 level. It is close to the 50% Fib retracement level of the recent surge from the $9,680 low to $9,998 high. On the upside, the price is facing a huge hurdle near the $10,000 level.
If there is a successful daily close above the $10,000 resistance, the price might rise steadily in the coming sessions. The next key resistance is near the $10,500 level, above which the bulls are likely to aim a test of the $11,200 level.
Fresh Decline in BTC?
If bitcoin fails to continue above the $10,000 resistance, it could correct lower. The main support is near the $9,800 level (the recent breakout zone).
The next major support is near the $9,720 level and the 100 hourly simple moving average, below which there is a risk of a sharp decline towards the $9,500 level in the near term.
Technical indicators:
Hourly MACD – The MACD is currently showing positive signs in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 65 level.
Major Support Levels – $9,800 followed by $9,720.
Major Resistance Levels – $10,000, $10,200 and $10,500.
