Bitcoin Price Topside Bias Vulnerable Unless It Surges Past $9,500

Aayush Jindal

1 year ago

2 mins read

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Bitcoin started a strong downside correction from the $9,945 high against the US Dollar. BTC tested the $8,800 support area and it is currently correcting higher.

Bitcoin is trading above the key $8,800 and $9,000 support levels.
The price is facing a couple of key hurdles near the $9,400 and $9,500 levels.
There is a major declining channel forming with resistance near $9,560 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair must surge above $9,500 and $9,560 to avoid more losses in the near term.

Bitcoin Trading Above Key Supports

This past week, bitcoin formed a key short-term top just below the $10,000 level against the US Dollar. BTC price traded as high as $9,945 before it started a major decline.

There was a sharp slide below the $9,500 and $9,250 support levels. The price even broke the $9,000 support and settled below the 100 simple moving average (4-hours). It tested the $8,800 support level and formed a low at $8,806.

Bitcoin price is currently correcting higher and trading above $9,000. It surpassed the 23.6% Fib retracement level of the recent decline from the $9,945 high to $8,806 low.

On the upside, there is a major hurdle forming near the $9,400 level and the 100 simple moving average (4-hours). The 50% Fib retracement level of the recent decline from the $9,945 high to $8,806 low is also near $9,375 to stop the current move.

More importantly, there is a major declining channel forming with resistance near $9,560 on the 4-hours chart of the BTC/USD pair. If the pair climbs above the $9,400 resistance, it could face a strong resistance near the $9,500 and $9,560 levels.

To move back into a positive zone, the price must climb above $9,400 and then gain pace above the channel resistance zone. The next key resistance is near the $9,800 level and $10,000 levels.

More Losses?

If bitcoin fails to stay clear the $9,400 resistance, the 100 simple moving average (4-hours), and $9,500, there is a risk of more losses in the near term.

In the mentioned case, the price is likely to decline below the $9,000 support. The main support is near the $8,800 level, below which the bears are likely to aim a test of the $8,400 level.

Technical indicators

4 hours MACD – The MACD for BTC/USD is losing pace in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 45 level.

Major Support Level – $9,000

Major Resistance Level – $9,500

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Risk disclaimer: 76.4% of retail CFD accounts lose money.

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.