Bitcoin Hesitates But This Technical Breakout Suggests Gains Above $9,800

Aayush Jindal

1 year ago

2 mins read

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Bitcoin started a downside correction from the $9,780 swing high against the US Dollar. BTC found support near $9,600 and it is currently gaining bullish momentum for a fresh rally.

Bitcoin is trading nicely above the $9,500 support zone and the 100 hourly simple moving average.
A short-term downside correction seems to be over near the $9,570 level.
There was a break above a key contracting triangle with resistance near $9,640 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could soon break the $9,700 and $9,800 resistance levels for more upsides.

Bitcoin Price Could Resume Rally

Yesterday, we saw a sharp increase in bitcoin price above the main $9,500 resistance against the US Dollar. BTC rallied above the $9,700 level and settled above the 100 hourly simple moving average.

The price traded to a new weekly high near $9,780 and started a downside correction. It broke the $9,700 level to move into a short term correction phase. However, the decline found support near $9,570 and the price remained well above the $9,500 area.

A low was formed near $9,570 and the price is currently rising. There was a break above the 23.6% Fib retracement level of the recent correction from the $9,781 high to $9,570 low. More importantly, there was a break above a key contracting triangle with resistance near $9,640 on the hourly chart of the BTC/USD pair.

Bitcoin price holding $9,500: Source: TradingView.com

The current technical structure suggests bitcoin price could continue to rise above $9,700. Immediate resistance is near the $9,675 level. It is close to the 50% Fib retracement level of the recent correction from the $9,781 high to $9,570 low.

If the bulls gain momentum above $9,670 and $9,700, the price is likely to climb above the $9,780 swing high in the near term. The next target for them may perhaps be $10,000 or $10,200.

Downsides Might be Limited in BTC

On the downside, bitcoin is likely to find a strong buying interest near the $9,600 level. If there is a daily close below the $9,500 support, the price could continue lower.

The next major support is seen near the $9,500 level, below which the 100 hourly SMA at $9,450 is likely to stop the decline.

Technical indicators:

Hourly MACD – The MACD is about to move back into the bullish zone.

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

Major Support Levels – $9,600, followed by $9,500.

Major Resistance Levels – $9,670, $9,700 and $9,800.

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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