Bitcoin Just Saw Key Technical Correction But This Level Can Trigger Fresh Increase

Aayush Jindal

1 year ago

2 mins read

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Bitcoin started a downside correction after it was rejected near $9,500 against the US Dollar. BTC is now trading near the main $9,200 support and it could either start a fresh increase or dive to $9,000.

Bitcoin is correcting lower and approaching the $9,200 and $9,180 support levels.
The price is currently trading below the $9,280 pivot level and the 100 hourly simple moving average.
There was a break below a crucial bullish trend line with support near $9,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must stay above the $9,180-$9,200 support area to start a fresh increase.

Bitcoin Price Testing Key Support

After a decent upward move, bitcoin faced a strong resistance near $9,480 and $9,500 against the US Dollar. BTC traded as high as $9,480 and recently started a downside correction.

There was a break below the $9,400 and $9,300 levels. The price even broke the $9,280 pivot level and the 100 hourly simple moving average. There was also a break below the 23.6% Fib retracement level of the upward move from the $8,917 swing low to $9,480 high.

More importantly, there was a break below a crucial bullish trend line with support near $9,360 on the hourly chart of the BTC/USD pair. The pair is now trading near the $9,200 and $9,180 support levels.

Bitcoin price testing $9,200: Source: TradingView.com

The 50% Fib retracement level of the upward move from the $8,917 swing low to $9,480 high is also acting as a strong support. It seems like the price is trading near a major inflection zone at $9,180. If it stays above the $9,180 support, it could start a fresh increase in the coming sessions.

On the upside, an initial resistance is near the $9,280 level and the 100 hourly SMA. A successful close above the $9,280 level might open the doors for a push towards the $9,400 and $9,500 levels.

Bearish Break in BTC

Conversely, there is a risk of a bearish break below the $9,200 and $9,180 support levels. If bitcoin closes below the $9,180 level, it could continue to move down.

The next major support is near the $9,000 level, where the bulls are likely to appear. Any further losses might lead the price towards the $8,800 level.

Technical indicators:

Hourly MACD – The MACD is about to move back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 40 level.

Major Support Levels – $9,180, followed by $9,000.

Major Resistance Levels – $9,280, $9,400 and $9,500.

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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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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