Bitcoin (BTC) Price Showing Positive Signs But Lacking Momentum

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price is up around 3% and it climbed above the $9,400 resistance against the US Dollar.
The price is currently correcting lower after tagging the $9,600 resistance area.
There is a key bullish trend line forming with support near $9,340 on the hourly chart of the BTC/USD pair (data feed from Kraken).
Both Ethereum and ripple are showing positive signs above $182 and $0.2950 respectively.

Bitcoin price jumped recently above $9,400 and $9,500 against the US Dollar. BTC price is currently correcting lower and it is likely to find support near $9,340 and $9,300.

Bitcoin Price Analysis

In the past two sessions, bitcoin started a steady rise from the $9,100 support area against the US Dollar. BTC broke the key $9,400 resistance area and settled above the 100 hourly simple moving average.

Moreover, the price rallied above the $9,500 resistance area. Finally, a high was formed near $9,600 and the price is currently correcting lower. It corrected below the $9,480 level, plus the 23.6% Fib retracement level of the recent upward move from the $9,081 low to $9,599 high.

At the outset, bitcoin is trading near the $9,400 support area. If there are more downsides, the price could test the $9,340 and $9,320 support levels (the previous resistance levels).

Besides, the 50% Fib retracement level of the recent upward move from the $9,081 low to $9,599 high is near the $9,340 level. More importantly, there is a key bullish trend line forming with support near $9,340 on the hourly chart of the BTC/USD pair.

If there is a downside break below the trend line, the price could decline below $9,300. Additionally, the next major support is near the $9,240 level and the 100 hourly simple moving average.

Any further downsides might push the price towards the $9,200 support area. Conversely, bitcoin price may perhaps rise again if it stays above $9,340 and $9,300.

An initial resistance is near the $9,480 and $9,500 levels. A successful break above the $9,500 resistance is likely to spark another rally towards the $9,600 level. The next key resistance on the upside is waiting near the $9,800 level.

Looking at the chart, bitcoin is showing many positive signs and the recent rally above $9,400 was bullish. In the short term, there could be a downside correction, but the price remains well supported near $9,340 and $9,300. The main uptrend support is near the $9,200 level, below which the price could move into a bearish zone.

Technical indicators:

Hourly MACD – The MACD is a about to move into the bearish zone.

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

Major Support Levels – $9,340 followed by $9,200.

Major Resistance Levels – $9,480, $9,500 and $9,600.

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.