Bitcoin Bullish Flag Breakout Could Pump BTC, But $9,500 Holds The Key

Bitcoin traded as low as $9,165 and recently started a fresh increase against the US Dollar. BTC is currently rising, but it might struggle to clear the main $9,500 resistance zone.

• Bitcoin is showing recovery signs and trading above the $9,300 resistance zone.
• The price is likely to continue higher towards the $9,450 and $9,500 resistance levels.
• There was a break above a major bullish flag pattern with resistance near $9,340 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
• The pair could face a strong barrier near the $9,500 level and the 100 simple moving average (4-hours).

Bitcoin is Showing Recovery Signs

This past week, bitcoin declined steadily from well above the $9,500 resistance against the US Dollar. BTC price traded below the $9,300 support level and even settled well below the 100 simple moving average (4-hours).

A swing low was formed near the $9,165 level before it started a decent upward move. There was a break above the $9,250 and $9,300 resistance levels. The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $9,587 swing high to $9,165 low.

More importantly, there was a break above a major bullish flag pattern with resistance near $9,340 on the 4-hours chart of the BTC/USD pair. It has opened the doors for more gains above the $9,350 level.

Bitcoin Grinding Higher. Source: TradingView.com

Bitcoin price is testing the 50% Fib retracement level of the downward move from the $9,587 swing high to $9,165 low. A clear break above $9,400 could set the momentum for a push towards the main $9,500 resistance zone.

The 100 simple moving average (4-hours) is also waiting near the $9,500 resistance area. Therefore, an upside break above the $9,500 resistance zone is needed for a strong upside continuation. The next major hurdles are seen near the $9,800 and $9,840 levels.

Fresh Decline in BTC?

If bitcoin struggles to clear the $9,400 and $9,500 resistance levels, there is a risk of a fresh decline. An initial support is near the broken flag resistance at $9,300.

The main support is now forming near the $9,080 level, below which there is a risk of a larger decline below the $9,000 support in the coming sessions.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly gaining in the bullish zone.

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

Major Support Level – $9,300

Major Resistance Level – $9,500

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