Bitcoin Price (BTC) Breaks Key Resistance But Can It Continue Higher?

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price formed a strong support near the $9,500 level and recently recovered against the US Dollar.
The price broke the key $9,800 and $10,000 resistance levels to move into a positive zone.
This week’s highlighted major bearish trend line was breached with resistance near $9,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is currently struggling to gain momentum above $10,200 and the 100 hourly SMA.

Bitcoin price is trading with a positive bias above the $10,000 resistance against the US Dollar, just like Ethereum and ripple. However, BTC price must surpass the $10,200 resistance to continue higher in the near term.

Bitcoin Price Analysis

In the past three days, there was a significant decline in bitcoin price below the $10,000 support against the US Dollar. The BTC/USD pair traded close to the $9,500 level before the bulls took a stand. A swing low was formed at $9,498 and the price is currently correcting higher. It broke many important resistance near the $9,700 and $9,800 levels. Moreover, there was a break above the 23.6% Fib retracement level of the downward move from the $11,200 swing high to $9,500 swing low.

Additionally, this week’s highlighted major bearish trend line was breached with resistance near $9,900 on the hourly chart of the BTC/USD pair. The pair traded above the key $10,000 resistance level. However, the upward move was capped by the $10,200 level and the 100 hourly simple moving average. Besides, the 50% Fib retracement level of the downward move from the $11,200 swing high to $9,500 swing low is also waiting near the $10,350 level.

Therefore, the price must break the $10,200 resistance and gain pace above $10,350 to continue higher. The next important resistance is near the $10,800 level. It represents the 76.4% Fib retracement level of the downward move from the $11,200 swing high to $9,500 swing low.

Conversely, if the price fails to surpass the $10,200 resistance and the 100 hourly SMA, there could be a bearish reaction. An immediate support is near the $10,000 level, below which the price could revisit the $9,800 support area. Moreover, if there are more losses, the price may perhaps break the $9,500 support and extend losses in the near term.

Looking at the chart, bitcoin price is clearly trading near a crucial resistance at $10,200. If there is an upside break, the price could continue to rise towards $10,500 and $10,800. If not, the price could revisit $9,500.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level, with correction signs.

Major Support Levels – $10,000 followed by $9,800.

Major Resistance Levels – $10,200, $10,350 and $10,800.

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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