Bitcoin Above $10,200 Make Case For Larger Rally In Steep Short-Term Reversal

Aayush Jindal

1 year ago

2 mins read

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Bitcoin started a sharp increase above $9,800 and $10,000 against the US Dollar. BTC is currently consolidating and it could soon rally above $10,200 for the next bullish wave.

Bitcoin price is showing positive signs above the $10,000 pivot level against the US Dollar.
A new intraday high is formed near $10,279 and the price is currently correcting lower.
There is a key bearish trend line forming with resistance near $10,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
Ethereum jumped more than 5% and surged above the $275 resistance area.

Bitcoin Could Rally Towards $10,500 and $11,000

Yesterday, we saw a new weekly low in bitcoin price at $9,483 against the US Dollar. Later, BTC price started a decent upward move above the $9,700 and $9,800 resistance levels.

The bulls gained pace above a connecting bearish trend line, $10,000, and the 100 hourly simple moving average. As a result, the price traded towards the $10,300 level and a new intraday high is formed near $10,279.

It is currently correcting lower below $10,200. Besides, it is testing the 23.6% Fib retracement level of the recent rise from the $9,617 low to $10,279 high. However, there are many supports on the downside near $10,100 and $10,080.

On the upside, the $10,200 level is a key hurdle for bitcoin. Additionally, there is a key bearish trend line forming with resistance near $10,200 on the hourly chart of the BTC/USD pair.

Therefore, the price must settle above the $10,200 resistance area to continue higher in the near term. In the mentioned case, the bulls are likely to aim a break above the main $10,500 resistance area. If they succeed, the price could even test the $11,000 resistance area in the near term.

What if BTC Fails Again?

If bitcoin fails to surpass the $10,200 resistance area and the trend line, it could resume its decline. The first major support is near the $10,000 area. The next one is near the $9,950 level since it is the 50% Fib retracement level of the recent rise from the $9,617 low to $10,279 high.

The last line of defense is near the $9,900 level and the 100 hourly SMA. Any further losses might open the doors for a larger downward move towards the $9,650 and $9,500 levels.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 50 level.

Major Support Levels – $10,000 followed by $9,950.

Major Resistance Levels – $10,200, $10,400 and $10,500.

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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