Bitcoin Recovery Runs Into Crucial Resistance, But 100 SMA Holds The Key

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price started a decent recovery from the $10,139 swing low against the US Dollar. BTC gained pace above the $10,550 resistance, but it is facing a major hurdle near $10,800.

Bitcoin managed to stay above the $10,000 support and started a decent recovery.
The price is now trading above the $10,550 resistance and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $10,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is currently facing a strong resistance near the $10,800 level (the previous support).

Bitcoin Price is Gaining Traction

After trading as low as $10,139, bitcoin price started a decent recovery against the US Dollar. BTC broke a few important hurdles near $10,400 and $10,550 to move into a short-term positive zone.

The recovery was such that the price settled above the $10,550 level and the 100 hourly simple moving average. There was also a break above a major bearish trend line with resistance near $10,600 on the hourly chart of the BTC/USD pair.

Bitcoin is now testing the next key resistance near the $10,800 level. A high is formed near $10,789 and the price is consolidating gains. An initial support on the downside is near the $10,640 level or the 23.6% Fib retracement level of the recent increase from the $10,139 low to $10,789 high.

Bitcoin price breaks $10,550. Source: TradingView.com

The next major support is near the $10,550 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent increase from the $10,139 low to $10,789 high is also near $10,464 to act as a support.

On the upside, the bulls are facing a huge task near the $10,800 level. If they manage to clear the $10,800 resistance, the price is likely to accelerate higher towards the $11,000 and $11,200 levels.

Is This Just a Recovery in BTC?

If bitcoin fails to continue higher above $10,780 and $10,800, it could start a fresh decline. The first major support is seen near the $10,550 level and the 100 hourly SMA.

A downside break below the 100 hourly SMA might put the bulls on the back foot. In the stated case, the price could trim gains and dive back towards the $10,200 support.

Technical indicators:

Hourly MACD – The MACD is now losing steam in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower and it is above the 60 level.

Major Support Levels – $10,640, followed by $10,550.

Major Resistance Levels – $10,780, $10,800 and $11,000.

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.

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