TA: Bitcoin Holds Strong, Why 100 SMA Could Trigger Solid Gains Above $14K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price remained well bid above $13,300 and started a fresh increase against the US Dollar. BTC is back above $13,700 and it is likely to continue higher in the near term.

Bitcoin started a fresh upward move after it found a strong support near $13,300.
The price is now trading well above $13,600 and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $13,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is consolidating gains above the 100 hourly SMA and it could climb again above $13,800.

Bitcoin Price is Showing Positive Signs

After retesting the $13,300 support zone, bitcoin price started a fresh increase. There was a steady rise above the $13,500 and $13,600 resistance levels. BTC even surged above $13,800 and settled above the 100 hourly simple moving average.

There was also a break above a major bearish trend line with resistance near $13,700 on the hourly chart of the BTC/USD pair. Finally, there was a spike above the $14,000 resistance. A high is formed near $14,065 and the price is currently correcting gains.

It broke the $13,800 level, and traded below the 23.6% Fib retracement level of the recent increase from the $13,306 swing low to $14,065 high.

Source: BTCUSD on TradingView.com

The bulls are now defending the $13,700 zone and the 100 hourly simple moving average. The 50% Fib retracement level of the recent increase from the $13,306 swing low to $14,065 high is also near the $13,685 level to act as a strong support.

On the upside, the $13,880 level is an initial resistance. A clear break above $13,880 and then a follow up move above the $14,000 resistance could increase the chances of a sharp rise towards the $14,500 level in the coming sessions.

Fresh Decline in BTC?

If bitcoin fails to regain strength above $13,880, there is a risk of a fresh decline. The first major support on the downside is near the $13,680 level and the 100 hourly SMA.

A downside break below the $13,680 level and the 100 hourly SMA may possibly start another decline towards the $13,400 and $13,300 levels in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.

Major Support Levels – $13,680, followed by $13,500.

Major Resistance Levels – $13,880, $14,000 and $14,500.

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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