Bitcoin Bullish Flag Breakout Could Pump BTC, But $9,500 Holds The Key

Aayush Jindal

1 year ago

2 mins read

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Bitcoin traded as low as $9,165 and recently started a fresh increase against the US Dollar. BTC is currently rising, but it might struggle to clear the main $9,500 resistance zone.

Bitcoin is showing recovery signs and trading above the $9,300 resistance zone.
The price is likely to continue higher towards the $9,450 and $9,500 resistance levels.
There was a break above a major bullish flag pattern with resistance near $9,340 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair could face a strong barrier near the $9,500 level and the 100 simple moving average (4-hours).

Bitcoin is Showing Recovery Signs

This past week, bitcoin declined steadily from well above the $9,500 resistance against the US Dollar. BTC price traded below the $9,300 support level and even settled well below the 100 simple moving average (4-hours).

A swing low was formed near the $9,165 level before it started a decent upward move. There was a break above the $9,250 and $9,300 resistance levels. The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $9,587 swing high to $9,165 low.

More importantly, there was a break above a major bullish flag pattern with resistance near $9,340 on the 4-hours chart of the BTC/USD pair. It has opened the doors for more gains above the $9,350 level.

Bitcoin Grinding Higher. Source: TradingView.com

Bitcoin price is testing the 50% Fib retracement level of the downward move from the $9,587 swing high to $9,165 low. A clear break above $9,400 could set the momentum for a push towards the main $9,500 resistance zone.

The 100 simple moving average (4-hours) is also waiting near the $9,500 resistance area. Therefore, an upside break above the $9,500 resistance zone is needed for a strong upside continuation. The next major hurdles are seen near the $9,800 and $9,840 levels.

Fresh Decline in BTC?

If bitcoin struggles to clear the $9,400 and $9,500 resistance levels, there is a risk of a fresh decline. An initial support is near the broken flag resistance at $9,300.

The main support is now forming near the $9,080 level, below which there is a risk of a larger decline below the $9,000 support in the coming sessions.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly gaining in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.

Major Support Level – $9,300

Major Resistance Level – $9,500

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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.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

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.

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